The reclassification as rural will generate a 2,000% increase in value for the owners.
The Land Acquisition Law will allow thousands of houses to be built automatically on agricultural land. Owners of these properties have begun to maneuver to secure funding for what environmentalists and neighborhood associations consider a speculative land grab.
PalmThe owners of a dozen rural plots of land on the outskirts of municipalities like Palma and Calvià, as well as in Ibiza, have already begun taking steps to capitalize on the automatic rezoning promoted by the government of Marga Prohens, which could generate capital gains of over 2,000%. The Land Acquisition Law has prompted various owners and developers to sit down and negotiate, attempting to launch projects given this unique opportunity to secure millions in development rights, ostensibly to build new housing. Some of these transactions have already been announced through public tenders. Others are still being discussed behind closed doors. Most of these plots are not new to the real estate market; their current owners have already attempted to rezone their land.
One of the plots of land strongly rumored as a potential candidate for new urban development opportunities is Ses Planes (Calvià). Located between the Ponent motorway and Palmanova, it has a long history of rezoning attempts and was listed for sale just a month ago as a "unique opportunity in a transition area." The advertisement, now removed from the website where it was posted, also claimed that this unique opportunity stemmed from new regional regulations regarding strategic residential projects. Currently, the land is owned by Lubana 2007, a company linked to relatives of developer Mateo Sastre. For years, this businessman tried to develop the land he acquired from the Roses family, who even challenged him in court. Sastre was involved in the Son Espases case—also involving the purchase of rural properties to promote their rezoning—and in the Mallorca Territorial Plan case. In the latter case, then-president Maria Antònia Munar oversaw transactions deemed "indecent" by the GOB (Balearic Ornithological Group), which took the matter to court. In the case file, Judge Miquel Florit concluded that irregular transactions had possibly occurred to generate millions in capital gains, but these could not be proven.
The Munar Era
Ses Planes, along with Son Massot, were the properties chosen by the Consell de Munar for automatic rezoning. However, a highly contentious plenary session in 2004, marked by a bitter clash between the PSOE and PP parties, complicated the process. Subsequently, between the judicial investigation and the political will of the left-wing majority in the Consell de Mallorca from 2007 onwards, these designations were repealed, thus preventing any speculation in Ses Planes and the other rural properties involved in automatic rezoning. In 2012, yet another chapter unfolded in the attempts to develop Ses Planes. The PP in Calvià again tried to amend the General Plan, this time including private facilities. The project was frozen due to a change in the municipal government.
Ses Planes, and other properties currently on the market, are regaining hope for rezoning. Lubana 2007 meets the requirements to now achieve a change in its urban planning category through a declaration of a strategic residential project. The municipal planning regulations classify the 11 hectares of Ses Planes as rural, and according to the application of the already approved regulations, its value could increase by 2,000% and exceed 50 million euros, since 760 homes could be built to accommodate a population of approximately 2,000.
When the possibility arose of developing rural land surrounding cities, the now-famous Transition Areas (AT), for housing, the major developers in the Balearic Islands, represented by Proinba, protested vehemently. Their president, Óscar Carreras, asserts that today "some owners of Transition Area (AT) land might try to rezone it, but whether the city council will approve it is another matter entirely." Carreras doesn't believe that in the short term "any development will be approved in Mallorca or Menorca; there's only a possibility in Ibiza, because there's no viable developable land there."
PSIB deputy Carles Bona, who has studied some of the cases that could benefit from the rezoning, maintains that "although the law requires these types of developments to include price-controlled housing, it also provides for exceptions if the economic viability report submitted justifies it." "In this case, up to 25% of the homes can be market price. Therefore, we are facing a process of urbanizing the countryside under the pretext of providing housing for citizens," he laments.
Son Cabrer and other properties
Another property that has been the target of development attempts for years is Son Cabrer, an iconic estate adjacent to Son Espases Hospital. The property was acquired in 2003 by Bartolomé Cursach, at the height of Palma's growth expectations. The businessman himself testified before the commission investigating the Son Espases urban development case—regarding possible insider trading in the area surrounding the hospital—that he acquired it believing the city would expand in that direction.
The property was put up for sale for 19 million euros a few years ago. During the drafting of Palma's new General Plan, during the last political agreement, several real estate developers expressed interest in the future development of the property and the surrounding rural properties. However, the drafting team maintained its non-developable status. Now, with the law on its side, Son Cabrer once again has the possibility of being rezoned, which would considerably increase its value. Another property near Son Sardina, according to Palma municipal sources, has also shown strong interest in its development. According to data consulted by ARA Baleares, its location in a transition zone and its size make it ideal for selection as a strategic project. The same sources point out, however, that "the mayor has personally committed to not allowing any developments to be built on rural land in either Son Sardina or Establiments." The increase in value of the property, which spans more than 10 hectares and has been circulating within Palma's Urban Planning Department for years, could exceed 40 million euros. Despite the commitment from the City Council's top official, residents have asserted in recent weeks that, until a specific modification of the regulations is made, "properties that meet the necessary conditions can be rezoned," and have therefore demanded action "and not just words" from Jaime Martínez. A study by the platform 'Palma for Living, Not for Speculating' indicates that transition zones could accommodate up to 252,000 new residential spaces in Palma alone. This organization estimates that 634 hectares of rural land "would be sacrificed" for the benefit of housing construction. As urban planning experts like former Director General Luis Corral have repeatedly pointed out, "regulations are made for a reason." "Transforming land doesn't happen overnight; it takes years, reports, plans, and studies. Doing it automatically violates the law and creates urban planning tailored to the needs of a few, not everyone," he asserts.
Public outcry erupted when the Land Acquisition Law, which allows for the transformation of rural land designated as a 'transition area' into developable land, reached the plenary session of the regional parliament. This law, promoted by the PP and Vox parties, is described by GOB Mallorca as "the most aggressive in decades." The environmental organization has denounced that, behind the guise of a response to the "housing emergency," it actually opens the door to spectacular urban development and a massive increase in the value of rural land, favoring private interests over the common good. In Palma and its surrounding areas, the neighborhoods of Secar de la Real, Son Sardina, Son Anglada, and Establiments are some of the focal points of protest. Organized residents denounce that the approval of these transition areas could triple or quadruple the density of their neighborhoods without providing the necessary services, transportation, or amenities. In a statement, the residents' platform declared that "it's not a government, it's a developer."
The GOB (Balearic Ornithological Group) and local residents, who went to the Palma City Hall (Cort) this past Thursday, have adopted a multi-pronged strategy, including demonstrations, assemblies, information workshops, and rallies in front of the Parliament building, with banners proclaiming "the land is not for sale, it must be defended." This institutional action translates into formal objections to prevent local councils from approving Strategic Residential Projects on rural land while developable land remains available, and pressure to suspend the processing of any project affecting transition zones. The GOB has also decided to involve international institutions and has taken the case to Europe, informing European Union bodies and other institutions about the risk this policy poses to the land, the landscape, and water resources.
In the opinion of environmentalists, the law abruptly modifies existing municipal regulations and planning models, and allows construction in rural areas without first exhausting the designated developable land. The GOB (Balearic Ornithological Group) calls it a "frontal attack on rural land" and demands that municipalities refuse to apply the law until the environmental and territorial impacts are assessed. They denounce numerous effects: speculative increases in land value and profits, pressure on already saturated infrastructure, additional water and energy consumption, and the loss of agricultural or forest land that until now served as green spaces. They also emphasize that the affected areas often lack full connectivity with urban centers, which could create "new dormitories" devoid of community life or amenities. The government insists that it is necessary to find ways to build new housing.