Spain’s Balearics will allow building on rural land to address housing shortage

The Balearic Islands government this week passed a decree allowing for the reclassification of rural land in order to build more housing in Palma de Mallorca. The change could also soon be extended to other municipalities on the islands, according to local media reports.

The governing centre-right Popular Party approved the bill with the support of far-right Vox, meaning the region’s new housing decree can move forward in a bid to create more accessible and affordable for locals.

This comes amid an acute housing shortage across the islands in recent years that has seen locals priced out of their neighbourhoods and, in some cases, even forced police officers and teachers to live in their cars or caravans.

According to data from Spain’s National Statistics Institute (INE), the average price of properties in the Balearics has risen 30 percent in the last five years, while rent has increased by 40 percent.

READ ALSO: Renewed calls for Mallorca to ban non-residents from buying property

Local newspaper Diario de Mallorca reports that the decree could be extended to municipalities with populations of over 20,000 inhabitants. In this case, it would be the local councils that decide whether to reclassify the land, so places like Calvià, Marratxí, Llucmajor, Alcúdia, Inca and Manacor could also implement the change.

According to the Regional Minister for Housing, José Luis Mateo, 50 percent of the buildings built on these formerly rural areas must be used for affordable housing. In addition, 15 percent of the land must be transferred to the local council for the construction of social housing.

Mateo argues that these measures will serve to alleviate the lack of affordable housing in the face of a “major social demand”. The authorities, he argues, have been forced to adopt “extraordinary measures” because the housing crisis – compounded in the case of the Balearics due a lack of space combined with an influx of foreigners and tourist accommodation in recent years – “has not stopped growing” and has become a “source of social unrest” among local people.

2024 was a year of protests in Spain, with demonstrations against mass tourism and the impact it has on residents, particularly in terms of affordable housing, across the country in holiday hotspots such as the Balearic Islands, the Canaries, Málaga, Barcelona, Madrid, Valencia, Alicante and other cities.

READ MORE: ‘Our island isn’t for sale’ – Spain’s Mallorca protests against mass tourism again

Advertisement

The decree, the minister added, also aims to speed up planning and construction processes to make it “more effective and viable” with the aim of simplifying system, as well as unblocking developable land to obtain more affordable housing. 

The decree also states that it will substantially reduce the processing times for residential projects to between 18 and 24 months, as they can currently exceed 10 years.

The new housing will have a requirement of at least five years’ residence to access one of these properties.

The bill also includes the exclusion of rental assistance and access to public housing for those who have been convicted of crimes of trespassing or breaking and entering (squatting, in other words) and assistance will be made available for those affected.

Advertisement

This is far from the first radical proposal from Balearic politicians to try and alleviate the housing crisis on the islands.

In late-2024, left-wing political party Més per Mallorca proposed a new bill to restrict the sale of second homes on the popular Balearic Island, only allowing resident buyers.

Spokesperson for the party, Lluís Apesteguia, aims to address the “housing emergency” that the island is experiencing, due to the dramatic increases in housing prices and rents.

Més per Mallorca want to be able to guarantee that residents have access to “decent and affordable” housing, and believe that a ban on the sale of holiday homes for non-residents will ease the situation.

READ ALSO: