The president of the Balearic Government, Marga Prohens, has categorically ruled out applying limitations to the price of rent in the Balearic Islands, despite pressure from the central government and the fact that several municipalities have requested to declare stressed areas to be able to put price caps.
“If the limitation of rental prices worked, I would be the first to do so. We are a pragmatic and practical government, all experts agree that this measure does not work and aggravates the problem,” said the president during an event with mayors.
A few weeks ago, the Executive of Pedro Sánchez had linked future state aid for the construction of real estate to the declaration of stressed areas, which would mean limiting rental prices in those areas with the greatest real estate pressure.
Refusal to declare tensioned zones
The Govern not only renounces to apply the limits contemplated in the state housing law, but also will not enable the municipalities to do so in their respective municipalities.
“If the rent cap worked, I would be the first to apply it,” Prohens insisted, in response to the request of some municipalities.
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Despite these requests, the leader of the Autonomous Executive has been forceful in denying any possibility of activating the mechanism that would allow a municipality to be declared a stressed zone, a prior step to limiting prices.
Criticism of the Berlin and Catalonia model
During her speech, Prohens cited international and national examples where, she said, the price cap policy has failed.
“In Berlin we have seen how it is failing,” she said, and added that in Catalonia 20% of the supply has left the market. According to the president, the conditions of the properties available for rent have also worsened.
“Out of responsibility, I am not going to import measures that have not worked in other places,” he said, in the presence of several mayors in favor of this intervention in the real estate market.
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