As 2025 begins, Mallorca faces key developments in housing, retail, urban planning, environmental concerns, and tourism. Rising rents have reignited concerns about affordability, while small businesses look forward to a promising sales season. Palma’s Pere Garau neighborhood prepares for a major transformation, Sóller grapples with air pollution, and the Serra de Tramuntana witnesses a historic first with a hot air balloon flight. Here’s a look at the week’s top stories.
Housing Crisis Intensifies: Rents Surge by Nearly 10%
The challenge of securing affordable housing in the Balearic Islands remains firmly in the spotlight, as rental prices across the region soared by 9.5% in 2024. Despite a slight decline of 2.4% in the last quarter, the average price now stands at €17.60 per square metre, according to property portal Idealista. Palma saw an 11.9% increase, surpassing the regional average, while Ciutadella led the surge with a 22.8% rise. Alcúdia (18.1%) and Manacor (13.1%) also recorded significant hikes, solidifying the upward trend in rental costs across the islands.
Sales Season Kicks Off with Optimism and Record Hiring
Following a successful holiday season, small businesses in the Balearic Islands are entering the post-Christmas sales period with high expectations. According to business associations Pimeco and Afedeco, the average consumer is projected to spend €90 on discounted items. The islands rank as the second-highest region in Spain for job creation in the retail sector, with Randstad estimating 3,500 new contracts, a 24% increase compared to the previous year.
Transformation of the Metropolitan Cinema: A New Public Services Hub for Pere Garau
Palma’s Pere Garau neighborhood is set for a major redevelopment with the demolition of the Metropolitan Cinema in 2026. The site will be transformed into a six-story public complex, including an underground car park, a children’s nursery, a library, a community center, and an 800m² Public Health Centre. The city council acquired the property and adjacent buildings for €3.64 million, with construction expected to begin in late 2025.
Air Pollution Concerns in Sóller
A recent report by the association Sóller per l’Aire revealed that air quality in the town exceeded WHO-recommended pollution limits in December. The most affected areas, Plaza Constitución and Calle Isabel II, recorded high PM2.5 particle levels, primarily due to agricultural burning, heating emissions, and road traffic. Only the area near Biniaraix met air quality standards, while the rest of Sóller exhausted its annual allowance of three or four high-pollution days within a month. In the case of the town’s central square, there were 14 days with average daily particle pollution above this WHO threshold.
First Hot Air Balloon Flight Over the Serra de Tramuntana
Marking a historic milestone, two hot air balloons completed the first commercial passenger flight over the Serra de Tramuntana, flying from Sóller to Búger at an altitude of 1,900 metres. Led by pilot Ricardo Aracil of Mallorca Balloons, the flight lasted approximately one hour, with a ground team monitoring the landing near Inca. This rare flight opportunity depends entirely on ideal weather conditions, and the balloon flights can only be confirmed the night before departure.
Text by Sebastian Cerutti
