The president of the API association of estate agents in the Balearics, José Miguel Artieda, says agencies are being forced to close due to a lack of properties to sell. "We are experiencing an unprecedented situation; we have never experienced a supply crisis before."
The most affected are traditional agencies that sell to residents. Artieda explains that agencies typically used to have between 40 and 60 homes for sale. "If they now have between four and eight, it's pretty much a miracle." Given this situation, an option is to amalgamate with other agencies.
And it is a situation, he adds, that is aggravated by unfair competition. "There are individuals without any training, including influencer types who don't even speak Spanish, who are selling homes. People are unaware of the significant risks they take by putting themselves in the hands of those who lack the necessary knowledge."
Artieda is urging politicians to regulate estate agents in order to prevent this. The Balearic Government did regulate, but the Spanish Government challenged this on European competition grounds.
While the traditional agencies are under pressure, Artieda points out that the number of luxury real estate agencies is increasing. These are now from the likes of Dubai and the US, whereas in the past they have primarily been German or British. This is because much of the limited construction is for luxury homes, given how profitable they can be.