The construction industry in Mallorca and the Balearics is looking forward to a positive end to 2025 and to a very good 2026, with demand increasing on several fronts. These include public works and the building of homes.
Based on College of Architects figures for projects that have planning permission, there is set to be a 40% increase in new building and a 37% rise in home renovations.
Sandra Verger, the manager of the builders association, points out that the increase in the building of houses is largely because of Balearic Government liberalisation of regulations in respect of rustic land. The legislation for this was passed in July 2024 and is now resulting in work; it will remain in force until 2027.
There are also encouraging signs of an increase in the building of apartments, the construction industry gradually returning to a focus on the only type of properties that can truly alleviate the housing problems in the Balearics.
There has been growth in home renovations since the pandemic. This is attributed to the impact that lockdown had - it spurred people into wanting to remodel their properties - and to the fact that renovation is an alternative to moving home.
Key public works include the regeneration of the south runway at Palma Airport, the hospital planned for Felanitx and the new secondary school in Llucmajor. The level of planned investment up to September was €442 million, which represented a 24% increase compared with last year.
One sector with a notable decrease in investment is tourism; it is down 40%.