| Spanish real estate has hit turbulence recently, with | | | | developed areas of this elegant island are ripe for |
| the Costa del Sol dropping from the favourite area | | | | new development and prime property commands a |
| to buy to least popular in just two years, leaving | | | | great premium. It seems more people than ever |
| hundreds of thousands of holiday home owners | | | | before want to live on or invest in Mallorca, but locals |
| vulnerable to a sharp drop in prices this year. | | | | fear a doubling or trebling of the full time population in |
| The Costa del Sol has been particularly hard hit as | | | | just a few years, placing a strain on the island's |
| different negative factors came into play at around | | | | hospitals, schools and infrastructure, and vow to fight |
| the same time - 'land grab' - where developers take | | | | development plans. |
| land from existing owners with little recompense, | | | | A United Nations report highlights problems for both |
| world market jitters, and local corruption. | | | | the Costa del Sol and Mallorca, showing that local |
| Another complication has hit the property market on | | | | authorities are over dependent on new properties |
| the popular holiday island of Mallorca. Plans have been | | | | being built, with some city halls receiving over a |
| put forward for more developments, and the local | | | | quarter of their income from property related activity |
| populations has successfully organised mass protest | | | | - a figure only sustainable by allowing more and more |
| against development plans which they think will | | | | new developments, which eventually run contary to |
| destroy much of the island's culture and heritage. | | | | the wishes of the local populations. |
| Mallorca's economic base featured farming, livestock | | | | The report says that there has been 'uncontrolled |
| and agriculture before the 1960s. Before it became | | | | speculation for the last twenty years' and contributes |
| dependent upon tourism, Mallorca prided itself on | | | | to a poor housing situation for Spain's domestic |
| being able to take care of itself without outside | | | | market, with many developers preferring to |
| influence. The rising climate has made it hard to farm | | | | concentrate on holiday villas and apartments to |
| or raise livestock on the island. Limited water supplies | | | | providing good standard housing for local people. |
| make it difficult to maintain any kind of crop. The | | | | And it's local people in different regions of Spain who |
| sparse amount of agriculture that is still done in | | | | might change the way the property market works in |
| Mallorca is in an effort to keep up with the demand | | | | the future, more for themselves than for outsiders. |
| from tourists, and more development could spell | | | | The report says that the hardest hit sections of |
| disaster for the traditional way of life. | | | | society in the Spanish property market are the |
| According to the 2005 census, the population of the | | | | young and the elderly, women, gypsies and the |
| city of Palma was 375,048. The population of the | | | | disabled - and as mallorca has seen people are |
| entire area was estimated to be 517,285; the | | | | pushing housing policy higher up the political agenda. |
| 12th-largest urban area of Spain. Approximately half | | | | The UN report also says that some fifteen per cent |
| of the total population of Mallorca lives in Palma, and | | | | of Spain's apartments lie empty, even after |
| it is feared that more developments will see Mallorca | | | | discounting overseas owners. |
| turned into a concrete jungle. | | | | 'The amount of housing that isn't occupied might look |
| Mallorca started to develop as a tourist hot spot in | | | | alarming', comments a Mallorca internet site, 'But this |
| the 1920's. Mallorca now has more than six million | | | | isn't unusual. The same could be said of London, or |
| visitors each year, yet ninety-five percent of tourists | | | | among the Mediterranean countries Malta for |
| concentrate in only five percent of its territory. Less | | | | example. |