On 19 February, the 1st Alternative Finance and Investment Conference in Menorca was held in Mahón, bringing together leading professionals from the financial, legal and property sectors to analyse the current state of the island’s property market and its medium- and long-term growth prospects. Organised by TQ Eurocredit, TQ Alternative Investments and El Económico – Última Hora, in collaboration with Cuatrecasas, the conference focused on the current pressures affecting the property market and the financial and legal instruments available to address these challenges.
One of the key indicators highlighted was the upturn in new-build activity in 2026, with projections of nearly 300 new homes — representing a significant increase compared with previous years. Demand remains robust and prices continue to rise, driven by both local buyers and second-home buyers. However, this growth coexists with significant structural constraints.
Participants agreed that the principal constraint facing the sector is not a lack of investor interest, but rather regulatory restrictions, complex administrative and planning procedures, and ongoing legal uncertainty — factors that delay the delivery of new developments and limit the market’s ability to increase housing supply.
In this context, alternative finance is increasingly positioning itself as a strategic complement to traditional banking, rather than a substitute for conventional lending channels. It offers greater flexibility and facilitates the structuring of transactions aligned with new residential models, as well as projects requiring more agile and bespoke funding solutions.
The debate also addressed the social impact of the property market. Access to housing remains one of Menorca’s key structural challenges, and increasing supply — both public and private — will be essential to restoring balance to the market and ensuring sustainable access for residents and the local workforce.
The overall conclusion is clear: Menorca benefits from sustained demand, available investment capital and a pipeline of viable projects. The priority now lies in combining financial innovation, regulatory certainty and effective collaboration between public and private stakeholders in order to deliver increased housing supply in a sustainable, structured and well-planned manner.
Below are the key contributions of our CEO, José Pons, during the first round-table discussion on the housing challenges facing Menorca, where he outlined his perspective on the sector’s principal issues and the potential solutions to address them.
