Direct flight Palma–Abu Dhabi: Do the planes bring renewed buying appetite — and a housing crisis?

Direct flight Palma–Abu Dhabi: Do the planes bring renewed buying appetite — and a housing crisis?

Key question: Can a new air connection combined with rising construction costs accelerate displacement on Mallorca — and if so, how can we prevent it?

On a Tuesday morning on the Passeig del Born everything still seems normal: the bakery fills the air with the smell of fresh ensaimadas, a delivery van honks, construction workers at a nearby site take a break with coffee in paper cups. At the same time, an Airbus A321LR from Abu Dhabi lands at Son Sant Joan three times a week Etihad lleva Abu Dabi directo a Palma – desde junio de 2026; the new service EY115/116 brings travelers from the United Arab Emirates directly to the island metropolis Nueva conexión de Etihad Abu Dhabi–Palma: comodidad para los huéspedes, desafío para la isla. The schedules are fixed: departure Abu Dhabi 2:55 a.m., arrival Mallorca 8:15 a.m.; return flight from Palma 10:30 a.m., landing back in Abu Dhabi at about 7:00 p.m.

Such routes are initially driven by tourism. But Mallorca is small and the real estate market is tight. Experts point out that new direct routes make the island more accessible to buyers from farther away — not only holidaymakers, but also wealthy investors and potential residents. At the same time, according to data from the regional chamber of architects, approved construction projects are increasing: in 2025 there were 7,448 permits, an increase of 28 percent over the previous year; permits for apartments even grew by 31 percent. A significant share of this growth is explained by subsequent legalizations in rural areas.

Amid this development, Bernat Nadal, the dean of the Balearic architects' chamber, warns of another price spiral: higher material costs — an effect that is also linked to geopolitical tensions such as the Iran conflict — are driving construction prices up. His point can be summarized briefly: when building materials become more expensive, the property ultimately becomes more expensive.

Critical analysis: more flight hours, more demand, less protection

The dynamic is simple and persistent. Improved accessibility increases attractiveness. Attractiveness draws capital. Capital seeks scarce, secure assets — and housing on a popular Mediterranean island is both. At the same time, although construction numbers are rising, that does not automatically mean relief for tenants and buyers with smaller budgets. Much of the new projects target single-family homes and high-end apartments — segments that are often reserved for international buyers.

The current debate focuses heavily on numbers and flights, but less on two central questions: Who concretely benefits from the new projects, and which rules prevent local households from being displaced? Public housing is repeatedly demanded; at the same time, binding targets at the municipal level and a financing concept that acts quickly are missing.

What is missing from the public discourse

First: an honest accounting of the supply structure. We talk about percentage increases in permits, but hardly about the ratio of approved new builds to actually completed, habitable units for locals. Second: short-term countermeasures. High construction costs are a real cost driver — this must not be accepted as a permanent state. Third: transparency about ownership structures. Who is buying — private households, funds, offshore companies? Without these data, it is difficult to make smart rules.

A scene in front of Palma's town hall says more than many tables: in the morning a queue at social services, in the afternoon luxury cars in the harbor. This everyday polarity is the real problem: the island must remain affordable for the people who work and live here.

Concrete approaches

There are practical steps local politics and municipalities could take immediately:

- Set a binding share of social housing for every major new building permit (e.g. 20–30 percent) and mechanisms for verification.

- Relief measures for projects with affordable housing: reduced fees, faster procedures, subsidized loans tied to rent rules.

- Tax measures against vacant second homes and stricter reporting requirements for ownership structures to curb speculation.

- Regional procurement strategies for building materials and support for local suppliers to dampen price spikes.

- Expansion of municipal building departments and digital systems so that legalizations and new builds are not only approved but also precisely managed.

Conclusion

The new connection to Abu Dhabi Palma — Abu Dabi: Nueva conexión de Etihad plantea más preguntas que respuestas is not the sole trigger, but it is a relevant factor in a complex web of demand, capital flows and rising construction costs. Without active, coordinated countermeasures, expansion and improved accessibility risk mainly fueling the more expensive segments — benefiting investors to the detriment of many residents. On the streets of Palma you now hear the sound of jackhammers more often; that is not inherently bad. But if we allow those hammers to work only on projects that push locals out of the market, we have lost something essential: the island as a living space for the people who work here and have breakfast here, who take their children to school and run the shop next door.