Architects note an increase in construction due to the government's rural land amnesty.
Much of the 17.85% increase in the first half of the year comes from the new law approved by the PP with the support of Vox
PalmHousing construction grew by 17.85% in the first half of 2025 in the Balearic Islands compared to the same period last year, according to data released Wednesday by the Association of Architects, which reflect a 15.70% increase in construction in general. The association attributes a large part of this increase in approved projects to the entry into force of Decree Law 3/2024 and the subsequent Law 7/2024 on urgent measures for administrative simplification and rationalization—the amnesty for rural land—promoted by the PP government with the support of Vox.
The growth has been most notable in the case of single-family homes, with 24.51% more approved projects. However, if legalizations are not included, the increase drops to 1.59%. On the other hand, the increase in multi-family housing was 12.72%, despite a 33.87% drop in subsidized housing, with only 41 units approved. Overall, the Official College of Architects of the Balearic Islands (COAIB) has approved 1,040 extraordinary legalization projects since July 2024, of which 571 correspond to residential units.
The dean of the COAIB, Bernat Nadal, pointed out that, despite the regulatory push revealed by these data, it remains urgent to promote affordable housing for citizens. "The promotion of free housing will not solve the housing shortage on its own. We must rethink the capped-price model and strengthen public policies for subsidized housing," he argued.
The year-on-year increase in housing approvals in the twelve months between the end of June 2024 and the same date this year is 34.64%, and the monthly growth rate, which was 1.06% in December last year, has increased to 5.2%.
In Mallorca, the increase in housing construction in the first half of the year was 17.32% compared to the same period last year, in Ibiza and Formentera it reached 18.39%, and in Menorca it reached 21.89%. If the last 12 full months are counted, housing approvals recorded by the COAIB have increased year-on-year by 41.14%, in the Pitiusas by 2.92% and in Menorca by 99.38%.
More than 4,000 new homes
In absolute numbers, in the year leading up to July 2025, permits were issued for 4,311 newly built homes, of which 1,981 were single-family homes—almost 46% of the total—and the remaining 2,330 were open-price multi-family homes (54%). In Mallorca, of the 3,177 homes recorded up to the end of June, 1,526 were single-family homes (48%) and 1,651 were multi-family homes (52%).
In Ibiza and Formentera, permits were issued in one year, with 514 multi-family homes (63.3%) and 297 single-family homes (37.7%). In Menorca, according to data summarized by the COAIB Housing Observatory, of the 323 new homes, 158 were single-family homes—almost 49%—and the other 165 were multi-family homes (51%).
In its conclusions, the professional association highlights the "positive impact of legalizations" of non-regulated constructions on construction activity. Since July 2024, 1,040 extraordinary legalization projects have been submitted, of which 571 corresponded to homes. It also highlights the low promotion of subsidized housing—41 in one year—"which is what most of the population can afford," and the "poor results of limited-price housing"—206 of which were multi-family and single-family homes. "The promotion of free housing, in a market where demand far exceeds supply, will not solve the housing shortage for the population that suffers the most," he adds.