The Creation of the Official Register of Real Estate Agents

Registration in the ROAIIB is not simply a bureaucratic procedure; it is an essential step toward the professionalization of the real estate sector. This measure requires real estate agents to meet ethical and professional standards, with the aim of protecting consumers and ensuring the quality of services offered. The regulation was introduced in response to the need to combat intrusiveness and fraudulent practices that have historically undermined consumer trust in real estate transactions. With this regulation, a framework is established that not only organizes the sector but also promotes a more professional environment that respects consumer rights.

Advantages for Consumers and Professionals

Registration in the ROAIIB offers numerous advantages for both consumers and real estate agents. Firstly, it ensures that registered agents meet established standards, creating a safer and more trustworthy environment for buyers and sellers. The visibility of the registration number in all agent communications adds a layer of transparency, making it easier to identify accredited professionals.

For market users, this regulation provides greater protection against illegal or fraudulent practices. Additionally, agents are required to have Civil Liability and Surety Insurance policies, which enhance the security of transactions. This is crucial in a market characterized by high demand and the complexity of supply, where stricter control is necessary to prevent abuse and ensure the quality of services.

Consequences of Non-Compliance: Combating Unauthorized Practices

Failure to comply with the registration requirement, as well as the lack of visibility of the registration number in communications, is considered unauthorized practice and may result in significant financial penalties ranging from €3,001 to €30,000. Additionally, offenders may face temporary suspension of their registration or disqualification as real estate agents. This disciplinary approach aims to protect the integrity of the Balearic real estate market and ensure that those operating in this sector adhere to the regulations established for the benefit of consumers.

ABINI: Commitment to Transparency and Professionalization

Since its creation in 2020, ABINI has been a key player in promoting the regulation of the real estate sector in the Balearic Islands. The association has worked closely with the Balearic Government and other entities to ensure the effective implementation of the ROAIIB. According to its president, Hans Lenz, “this registry represents a crucial step forward for the professionalization of the real estate sector in the Balearic Islands and the safety of its users.” This statement underscores ABINI’s commitment to ensuring that its agents meet the necessary standards to protect consumers.

ABINI’s efforts to promote transparency and improve the sector have been fundamental in achieving this legislative milestone. The registration of its 45 members in the ROAIIB reflects a collective effort to raise the quality of real estate services in the Balearic Islands. This commitment translates into greater consumer trust, as they can now rely on real estate agents who operate ethically and professionally.

Recommendation for Users of Real Estate Agencies in the Balearic Islands

From ABINI, we would like to make a call to users of advisory and mediation services in the Balearic Islands. It is important to choose regulated advisors who comply with the law and display their registration number and badge on their website, offices, and advertising. Opting for serious and responsible professionals is a crucial safeguard when making one of the most important decisions in a person’s life: their home.

After six years of Pedro Sánchez’s government, the legislative balance in housing matters is bleak. A Land Law that has not materialized and a Housing Law that, far from solving the announced problems, has had adverse effects. These laws have created a more restricted market, raising rental prices and reducing supply. Instead of correcting this dangerous course, the Government proposes new measures that, in the case of the Balearic Islands, will not only be ineffective but are likely to worsen the situation.

Tourist and Seasonal Rental Property Registry: More bureaucracy, less real control

Among the new regulations, the Tourist and Seasonal Rental Property Registry stands out, imposing new bureaucratic burdens on both property owners and intermediaries, requiring them to register each property. While it may seem like a measure intended to regulate the market, in reality, it only adds more administrative complications without providing real solutions.

These measures do not stop temporary rental contracts; instead, they verify them retrospectively. Everyone in the real estate sector knows that this type of regulation only leads to greater legal uncertainty and unnecessary complexity. As Hans Lenz points out, “to this day, the supply of rental properties in the Balearic Islands has fallen by 30%, while prices have increased by 25% since the Housing Law came into effect.” These measures will only continue to cause more non-compliance from property owners and more complications for registry managers.

When a law is enacted, it is essential to ensure its compliance. In the Balearic Islands, effective control over the illegal supply of vacation rentals has not yet been achieved. How can we expect real estate platforms to function any differently from vacation rental platforms? We believe there is no guarantee that these new measures will improve the current situation.

€250 Rental Aid: An Ineffective Solution for Young People in the Balearic Islands

Another controversial measure is the €250 rental aid for young people, which limits access to rentals of up to €600 per month, or €900 if the regional government deems it necessary, or to rooms costing €300. In Palma, there are currently only 10 listings with these characteristics on property search portals.

Furthermore, there are cases of beneficiaries who have taken up to two years to receive the aid. This measure, in its current form, is not realistic in the context of the Balearic market. If the central government does not adjust the parameters of this aid to the reality of prices in the Balearic Islands, it will not only be ineffective but will also increase the frustration of young people trying to access housing in the region.

Real Solutions for the Balearic Islands: Public-Private Collaboration and the Release of Public Land

At ABINI, we believe that the government would do much better to support the urgent approval of the Urgent Housing Measures Law in the Balearic Islands, which puts at risk 4,000 affordable homes for residents. We also urge the Ministries to work on the release of public land in collaboration with the private sector to promote the construction of social and affordable housing.

A clear example of the inefficiency in the management of public land is Son Busquets, which has been neglected for decades due to bureaucracy and remains undeveloped, despite being a project that could alleviate the housing problem in the region. This inaction only demonstrates how the lack of collaboration between administrations has harmed the well-being of residents in the Balearic Islands. “We ask for real collaboration between the central government and the regional government so that this emergency measure and housing for residents can become a reality. Everything else that is being attempted right now to cover up past mistakes will have no positive effect, quite the opposite—more price increases and more non-compliance,” emphasized Lenz.

At ABINI, we insist that the measures proposed by the central government will not solve the problems of the real estate sector in the Balearic Islands. Nor is it expected that a significant number of the 183,000 promised homes will arrive in the Balearic Islands each year. Instead of adding layers of bureaucracy, pragmatic and viable solutions are needed that promote greater collaboration between the public and private sectors, as well as an adaptation of regulations to the local reality. Only in this way can we reverse the current trend of reduced housing supply and the uncontrolled increase in prices.

This blatant contradiction highlights the double standards of Més per Mallorca and the PSIB-PSOE, who, during the two terms they governed alongside Podemos, launched a campaign against foreign investment in the real estate sector, arguing that this phenomenon was responsible for the housing crisis in the Islands. However, their leaders have shown that they preach one thing and do another—such as in the case of the PSIB-PSOE under Francina Armengol, which sold its headquarters in Alaró to a German citizen for €350,000.

ABINI denounces that, after two terms leading the Balearic Government, Més per Mallorca, Podemos, and the PSIB-PSOE are directly responsible for the severe housing crisis affecting the Islands. They failed to act appropriately to curb the uncontrolled price surge and demonstrated a complete lack of foresight regarding the growing housing demand. Furthermore, their flagship proposal—to limit or ban the sale of properties to foreigners—is not only an impractical utopia but is also disregarded by the very leaders of these parties for their own economic gain. This is likely neither the first nor the last such case to come to light.

Adding to this situation is a new twist in the housing crisis: the warning of unconstitutionality regarding the 4,000 affordable housing units proposed by the government of Pedro Sánchez and Francina Armengol in Madrid. This represents yet another obstacle that further stifles the chances of accessing housing for residents of the Balearic Islands. The citizens of the Balearic Islands cannot remain hostage to such disastrous management.

ABINI will continue to advocate for an open and transparent real estate market, promoting real solutions to improve access to housing. This must include increasing the supply of affordable housing, providing incentives for construction, and improving urban planning, rather than resorting to demagogic and inconsistent measures.