In a move that could reshape the urban planning landscape of the Balearic Islands, the regional government led by the conservative Partido Popular (PP) has agreed to key demands from right-wing Vox party to allow the reclassification of rural land for residential development — a controversial decision soon passing through the Balearic Parliament.
A political trade-off to address the housing crisis
The new policy, embedded in a legislative decree awaiting ratification, opens the door to converting so-called “transition zones” — currently categorised as rustic land — into land eligible for urban development. The change will only apply to municipalities with populations exceeding 20,000, and the final decision to rezone will be up to individual municipal councils.
This measure forms part of a broader set of amendments designed to tackle the acute housing shortage affecting the archipelago — one of Spain’s most overheated property markets. The government has pledged that 50% of any new homes built under the scheme must be designated as subsidised housing (VPO) or subject to capped pricing, and developers will also be required to cede 15% of total building potential to town halls for public housing initiatives.
Key municipalities in the spotlight
If passed, the rule could significantly impact several larger municipalities in Mallorca, including Palma, Calvià, Marratxí, Llucmajor, Alcúdia, Inca, and Manacor — areas already experiencing intense demand for housing.
José Luis Mateo, regional housing minister, defended the plan as a necessary intervention in the face of growing housing pressure. “These modifications are designed to make more affordable housing possible in a context of clear residential emergency,” he stated.
Strategic urban developments expanded
Alongside the rural land reforms, the agreement also expands the scope for building on already urbanisable land. Originally confined to Palma under the “Strategic Residential Projects” (PRE) scheme, the initiative will now be available to any municipality in the region with over 10,000 residents. However, such developments will remain subject to approval by the relevant island council (Consell Insular).
This wide-ranging change will significantly increase the potential volume of new housing across the Balearic Islands, including on smaller islands such as Menorca and Ibiza, where growing tourism and foreign investment have drastically reduced housing affordability.
A contentious balance of development and preservation
While proponents frame the measures as critical for solving the islands’ worsening housing affordability problem, critics warn that reclassifying rural land risks triggering overdevelopment, environmental degradation, and creeping urban sprawl — all at a time when the Balearic territory is under increasing strain from mass tourism, climate pressures, and resident discontent over rising costs of living.
As with many regional policies negotiated across ideological divides, the long-term consequences will likely rest on how local councils choose to implement — or resist — the powers now being placed in their hands.
