Balearic Islands government challenges new Spanish housing decrees

The Government of the Balearic Islands is evaluating a potential appeal to the Constitutional Court following the introduction of two new royal decrees aimed at regulating the housing market. Balearic President Marga Prohens has criticized the measures, claiming they cause immediate negative effects, such as increased rental prices and a reduction in available housing supply.

Real estate professionals in the region warn that the new regulations could trigger a mass withdrawal of properties from the rental market. Concerns include increased legal insecurity for owners and the potential for landlords to implement more restrictive tenant profiles to avoid the responsibilities associated with housing vulnerable individuals.

The decrees, which are set for debate in the Spanish Congress, include provisions for protecting vulnerable tenants from eviction, regulating seasonal rentals, and establishing rules for contract renewals. The Balearic administration is specifically concerned about whether the central government is encroaching on regional competencies, particularly regarding the definition of large property holders and the management of stressed housing zones.