On July 7, a law allowing development in so-called transition areas was passed. These transition areas are rustic land where development wasn't previously possible. Under the new land law introduced by the Partido Popular government and with the support of Vox, transition areas for development are to be permitted in larger municipalities. In the largest of all, Palma, some extraordinary offers to purchase land were being made even before the law was passed.
An example: On June 3, the owner of an estate in Son Sardina was approached by a lawyer who presented an offer of 12 million euros. This was rejected. The following day, the offer was raised - to 72 million euros.
Óscar Carreras, president of the Proinba developers association, describes the 72 million euro offer as "outrageous". In his view these transition areas aren't about to be a solution for providing affordable housing.
He says: "I wouldn't buy land at all in a transition area. Paying these outrageous amounts of money is absurd." And one of the problems with these plots is that the process is long. "You have to present the project, a full council meeting has to accept it, then see if it's developed or not." He points out that the whole process, what with various studies, could take up to five years.
Apart from the speculation and the time necessary for development, Carreras is concerned about what these transition areas may mean for transport infrastructure. There will need to be "a mega" infrastructure and transport plan. "This is already necessary, but it will become even more necessary." Thousands more residents will further clog up the roads.
Carreras explains that developers are still unclear about where construction will be possible and how much land there will be. Opposition party Més have calculated there will 634 hectares of rustic land in twenty parts of Palma. "We advocate first exhausting urban and developable land. Transition areas are a political issue. They talk about thousands of homes that don't reflect reality, and they make a rough estimate of the number of homes that will be built."
A further concern is for land used for agriculture. Speculation, it is argued, will drive people out of the countryside. As one source puts it: "If their plot is part of the transition area, they will sell it entirely and stop farming, thanks to the whirlwind of the real estate world."