Rejection of the decrees by Congress led to the calling of the general election. | Photo: VON JO
Andrew EdeAlicia MateosPalma14/10/2026 08:05
José Miguel Artieda, president of the estate agents association in the Balearics, says "the rental market in Mallorca has ground to a halt: viewings, new listings, and renewals are being cancelled". The decrees approved by the Spanish Government, he maintains, have generated "fear among property owners", who are unwilling to put their homes on the market for fear of losing control over their properties.
According to Artieda, the rental market has been at a standstill since the government first approved the housing decrees, specifically one that provides for indefinite tenancies, stipulating that if landlords do not agree to this, they must compensate the tenant with up to 12 months' rent.
Although the decrees lapsed after failing to win approval in Congress, the government re-approved them last Tuesday after parliament had been dissolved for the general election and plans to submit them to the standing committee. The government has sufficient votes on this committee to ratify at least one of the measures: the one providing for two-year lease extensions and a ban on evictions for vulnerable individuals.
The complex web of regulations is, he believes, creating significant legal uncertainty for owners, who are reluctant to list their homes for rent for fear of being unable to reclaim them. "Agreements that had already been finalised between landlords and tenants are falling through, as landlords fear losing access to their properties."
One of the problems arising from this uncertainty is that owners do not know how to proceed or how to draft contracts that reflect lasting agreements without exposing themselves to potential harm. Furthermore, he notes that "listings that were ready to be published have been put on hold and viewings have been cancelled".
This situation, Artieda adds, will lead to price hikes, as "the only ones who do rent out their homes will do so at higher rates to compensate for the increased uncertainty". The regulations are therefore achieving the exact opposite of the intended goal. "They are making access to housing in Mallorca even more difficult. They are destroying the long-term rental market, and it is unlikely that properties currently used for unjustified seasonal rentals will be converted into long-term rentals."
He is calling on the various political forces to take the issue of housing access seriously and to reach an agreement on regulations - developed in consultation with the sector - that enable the people of Mallorca to access homes.