Spain is grappling with an escalating housing crisis in Majorca, where approximately 1,500 squatters have taken over abandoned and unfinished properties, many left vacant since the 2008 financial collapse. This surge in illegal occupation has exposed long-standing policy failures and a lack of housing development, leaving local families with few options amid a growing shortage of affordable homes. The situation highlights how years of political inaction and stalled construction projects have deepened the divide between economic growth and residential stability on the island.

Majorca Town Faces Housing Crisis as 1,500 Squatters Occupy Abandoned Properties Amid Stalled Development

In the picturesque island town of Santa Margalida in Majorca, a growing housing crisis is being exacerbated by the presence of an estimated 1,500 squatters occupying abandoned or unfinished properties. While tourism often bears the brunt of the blame for the region’s housing shortages, local authorities are pointing to squatting as a more immediate and pressing issue affecting the community’s ability to provide stable housing for its residents.

Santa Margalida, with a population of approximately 13,750, includes the coastal resort of Can Picafort, home to nearly 8,700 residents. Despite its appeal to holidaymakers, the town is now confronting a hidden challenge that has been years in the making. A significant number of homes—many left incomplete following the 2008 global financial crisis—remain uninhabited by legal residents and have instead become makeshift dwellings for squatters.

A Crisis Rooted in Inaction and Neglect

The issue, according to Santa Margalida officials, is not new. It has been quietly building for years as property development stagnated and enforcement remained weak. Mayor Joan Monjo recently addressed the issue publicly, stressing that squatting has reached unprecedented levels in recent times. He estimates that around 250 of the affected properties could have been used to house legitimate families, easing some of the pressure on the town’s strained housing market.

Monjo emphasized that the narrative often pushed in public discourse unfairly blames tourism for the housing crunch. “Tourism is constantly demonised,” he stated, while arguing that the real crisis lies in the hundreds of properties that are illegally occupied. He pointed out that instead of focusing exclusively on tourists, local and regional authorities need to take a closer look at the squatting epidemic, which continues to grow unchecked.

The Aftermath of the 2008 Financial Crisis

Many of the properties currently under squatter occupation were initially part of larger development projects that were abruptly halted when the 2008 financial crisis hit Spain. As developers went bankrupt and banks repossessed unfinished properties, construction ground to a halt. With very little new housing developed in the past 15 years, these vacant buildings have become targets for illegal occupation.

The slow recovery of the construction sector in Majorca has contributed further to the shortage. According to local officials, very few homes have been built in the town since 2010. This stagnation has created a void in affordable and accessible housing, particularly for local families, seasonal workers, and those in need of social housing. The lack of viable alternatives has allowed squatting to become a widespread, though unofficial, solution for many individuals.

Political Inertia and Policy Failures

Mayor Monjo did not hold back in criticizing the regional government and broader political leadership for failing to confront the issue head-on. In his view, there has been a noticeable absence of effective policies or coordinated action to either reclaim these properties or offer sustainable housing solutions for residents.

Spain’s housing crisis in Majorca has intensified as thousands of squatters occupy unfinished homes, revealing years of policy neglect and stalled development. The shortage of affordable housing now threatens community stability across the island.

A Tipping Point for Santa Margalida

As Majorca continues to attract millions of visitors annually, Santa Margalida’s housing dilemma illustrates a deeper imbalance between economic prosperity and social equity. While the island boasts stunning coastlines, thriving resorts, and a booming summer season, communities like Santa Margalida are struggling to maintain a livable environment for year-round residents.

With nearly one in ten people in the town either living in or affected by squatted properties, the situation is becoming unsustainable. Local officials are calling for urgent reforms, including clearer property laws, quicker enforcement against illegal occupation, and renewed investments in affordable housing projects.

Unless these actions are taken swiftly, Santa Margalida risks becoming a symbol of the island’s broader housing inequality—where vacant properties stand as silent witnesses to years of mismanagement, economic shocks, and political indifference.

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