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New regional development plan for Mallorca - Putting a stop to real estate speculation?

Neuer Raumordnungsplan Mallorca - Der Immobilienspekulation einen Riegel vorschieben
New regional development plan for Mallorca - Putting a stop to real estate speculation?

The Balearic Parliament has approved a new spatial development plan that further restricts the development of urban land.

In hardly any other region of Spain has the demand for building land grown as strongly as in the Balearic Islands in the past two years, despite the coronavirus crisis, and especially in Mallorca.

In addition to the naturally increasing demand for housing among the local population, the main reason for this is the blazing interest of foreign investors, who are increasingly looking for a secure investment, especially in economically uncertain times. And, as is well known, this includes real estate in Mallorca. Especially in the form of luxurious new builds such as detached single-family homes or villas outside of cities and towns. The spatial development plan that will soon come into force in the Balearic Islands is therefore intended to reduce the existing restrictions on the approval of new private construction projects in outlying areas. The previous plan provided for an annual population growth rate of 5.4 percent. The new version limits this to 3.2 percent.

An end to "Monopoly"
Perhaps one of the most significant changes in the new "Plan Territorial" in the Balearic Islands is the elimination of the so-called "Aereas de transición". This is a kind of waiting list for land on the islands that could be designated as building land in the foreseeable future.
In the past, this index has often led to the land listed as "areas de transición" in the spatial development plan being bought up by speculators at bargain prices in the hope or certainty that it would be converted into profitable building land in the near future.In future, the decision on when and where new development areas could potentially be designated as such, for example in the form of out-of-town housing estates (urbanizaciones), is to be made by the respective municipalities and in consultation with the regional building department of Mallorca's Island Council without such prior public announcement. This is intended to put a further stop to the still widespread real estate speculation, a spokesperson for the island council said at the presentation of the new spatial development plan at the end of last year.

New construction of detached villas will be limited

The spatial development plan also imposes further restrictions on the construction of detached villas or single-family homes with a living space of more than 150 square meters in rural areas. In future, this type of property may only be built in areas with a residential density of at least 40 inhabitants per hectare. In the case of less populated areas, only housing estates with terraced houses for a larger number of people may be built, if at all.

Settlement growth varies by municipality

The new spatial development plan provides for a maximum increase of 700 hectares of newly built land (suelo urbanizable) in Mallorca over the next two years. However, not everywhere on the island. The designation of new development areas is mainly concentrated in the municipalities of Palma and Llucmajor, the largest municipality on Mallorca. In other municipalities such as Pollensa, Sóller, Manacor or Sóller, the new spatial development plan limits the expansion of new development areas.

Unclarity regarding the expansion of commercial areas

In contrast, the plan provides little or no clarity regarding the future development and expansion for the construction of new industrial areas or large-scale public facilities such as solar parks for the generation of sustainable electricity.

The state government intends to submit these plans in the coming months.

Confusion about population growth

At the presentation of the new regional development plan, regional environmental protection associations such as GOB criticized the seemingly unrealistic target for the growth forecast of inhabitants and holidaymakers on the Balearic Islands as estimated by the regional government. According to the latest plans, this figure is to be limited from the current four million to a maximum of 1.6 million in order to reduce the consumption of resources such as water, electricity and waste disposal. In Mallorca alone, the number of local and foreign consumers staying on the island at the same time during the peak summer season was over two million. In order to achieve the state government's targets for the next two years, the number of vacation accommodations on the island would have to be reduced by more than half, explained a GOB spokesperson. Anything else would be window dressing.

Nevertheless. Both foreign travel companies and representatives of the local vacation industry welcomed the Govern Balear's latest plans to limit new construction projects on the islands.
In addition to the spatial development plan, in mid-January the President of the Provincial Council, Francina Armengol (Socialist PSOE party), also presented a new tourism law that also focuses on greater sustainability in the regional vacation industry to reduce the consumption of resources.
The main challenge in implementing the new regulations is for hotel companies on the islands. In return, they will be allowed to increase their number of beds by a total of 300,000 units. The Mallorcan hoteliers' association FEHM welcomed the proposed law, but called for sufficient time to implement the required changes and guidelines.

 
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