Property developers have issued Spain a stark warning amid its housing crisis. In the Balearic Islands, the emergency is threatening to bring essential services to their knees, and a staggering 45,000 new homes are needed in the next five years to prevent a “total collapse”.

The warning comes as essential workers, including doctors and police, have refused postings to the archipelago due to skyrocketing rents. “We’re facing a serious illness that’s going to get worse,” said Joaquín Chinchilla, president of APROVIBA, a newly-formed association representing small and medium property developers across Majorca, Menorca and Ibiza. “There are already doctors, police officers and Guardia Civil who are refusing to come to the Balearics because rent costs more than their salary.”

The developer chief revealed that the islands currently face a deficit of around 18,000 properties. However, this figure is set to explode in the next five years as an ageing workforce retires across key sectors.

“Many professionals will retire during this period and will need to be replaced by people who will have to come from outside, but there’s no housing to accommodate them,” Mr Chinchilla explained.

“The islands have practically been put up for sale. What I don’t understand is why the regional government doesn’t declare the archipelago a stressed zone,” he added.

Among the main obstacles for developers are lengthy licensing procedures and spirally construction costs. The association, which aims to give long-overlooked smaller developers a unified voice in negotiations with local authorities, has criticised the regional government for failing to utilise existing tools, such as the Balearic Islands Housing Institute, to expand access to credit for hard-pressed workers, reported The Olive Press.

However, Mr Chinchilla praised some recent policy decisions, including reclassifying equipment land before touching rural areas.

“In the islands, starting with Palma, there’s still sufficient urban and developable land available as long as there’s coordination between town halls and the regional government. Touching rural land should be the last option,” he said.

He proposed using vacant properties as a short-term solution while new housing is constructed. Currently, the developers have around 1,000 properties under construction in municipalities including Manacor, Calvià and Palma, with prices ranging from €119,000 (£100,200) to €220,000 (£185,300), aimed at working families.

“We’re asking for solutions, not more diagnoses,” Chinchilla concluded. “The situation is very serious and we’re running late, but we’re still in time to solve it if we act with courage.”