The rent review at the end of the year will worsen the housing crisis in the Islands: tenants will pay 4,615 euros more per year

PalmThe housing emergency in the Balearic Islands could worsen with the review of rental contracts expiring at the end of the year. According to figures from the Ministry of Social Rights, Consumer Affairs, and Agenda 2030, island tenants whose contracts end then will face a rent increase of €4,615 per year. This increase adds to an already unsustainable situation for many families: the average rent in the Islands exceeds €1,500, the second highest in Spain after Barcelona. The perfect storm is compounded by the expiration of the state ban on evicting vulnerable families, which, if nothing is done, will end on December 31. This situation could affect 60,000 families, according to estimates published by the newspaper. The CountryThe moratorium on the ban on evicting vulnerable families was approved in December 2024 – this measure was applied during the pandemic.

In Spain, 632,369 rental contracts will expire by the end of the year, according to the EFE news agency. This will affect 1.6 million people, with an increase of €1,735 per year, €3,000 less than the increase in the Canary Islands. Additionally, 2.7 million people will have rental contracts expiring in 2027. The second region most impacted by the upcoming rent increase will be the Valencian Community, with a much smaller increase than the Canary Islands: €2,686 per year. The increase will be €2,267 in the Canary Islands and €2,042 in Madrid. Catalonia is excluded from the calculations because it has areas with high demand that encompass 80% of its population. Madrid will be the region with the most contracts expiring by the end of the year: 145,881 contracts, affecting 404,090 people.

"The coming months will be dramatic in Mallorca: many people will be left on the street because they will not be able to pay their rent," declared Àngela Pons, spokesperson for the Platform of People Affected by Mortgages (PAH), regarding the impending situation - the statements were made by the newspaper Latest News. In fact, Pons believes this situation is worse than the 2010 housing crisis. The PAH (Platform of People Affected by Mortgages) anticipates a drastic increase in evictions and demands emergency solutions, such as the rehabilitation of disused buildings.