The 60-percent villages: How foreign buyers are changing Mallorca's neighborhoods

What are the consequences when in some villages more than 60% of purchases go to foreigners?

Strolling through the market in Pollença on a sunny morning, you hear olive sellers calling out, smell freshly baked bread and see tourists with cameras — but you rarely feel the statistic behind it all. Current data show that in places like Andratx, Fornalutx, Deia, Calvià and Pollenca, as well as in many municipalities of the Tramuntana, more than 60 percent of property purchases are now made by foreign buyers, as discussed in Almost every second property in the Balearic Islands in foreign hands – what does this mean for Mallorca?. A figure that slowly but clearly shifts neighborhood patterns.

Who buys, where the money ends up

Demand is concentrated on coastal zones and the panoramic mountain villages. No wonder: the sea, the narrow streets and the views are now commodities with price tags. Deia records averages around €8,900 per square meter, and in parts of Palma up to €10,000/m² are paid. In contrast, residential areas in the island's interior are around €1,600/m². The Balearics currently have just over 618,900 dwellings; the average living area is about 164 m² (Palma: ~134 m²).

What is often missing in the public debate

The obvious consequences — rising prices, higher rents — are only half the story. Less frequently discussed are the impacts on infrastructure and services, the emptying of villages outside peak seasons, and the problem of vacant second homes that leave houses isolated for months. Over half of the buildings were constructed before 1980; many do not meet today's energy and living standards. That means a growing need for renovation at the same time as a buying boom for expensive existing properties.

What social tensions arise?

When buyers with international incomes use single-family homes as holiday residences, daily life shifts. Young locals find themselves pushed out, trades see booming months followed by long quiet periods, public schools and a few shops struggle with fluctuating demand. In Fornalutx, on a foggy Tuesday morning, a woman selling bread in the bakery said: "The young people can hardly stay." Not anger, but quiet resignation. Such observations are not anecdotes — they reflect demographic shifts reported in Who Shapes Mallorca's Streets? A Reality Check on Island Demographics.

Economic and ecological side effects

The pressure to build and renovate brings both opportunities and downsides: more orders for tradespeople, but also more development of open spaces, higher resource consumption and the question of who will provide the necessary skilled workers. Industrially prefabricated housing could shorten construction times by around 30 percent and is therefore a recurring proposal in expert discussions. But template plans and concrete slabs alone do not solve the problem of healthy, mixed communities.

Concretely: What could change?

There are practical approaches that go beyond bans and panic. Some ideas that could work on Mallorca:

1) Renovation grants and energy subsidies: Grants for modernizing apartments built before 1980, linked to the condition that the unit is rented long-term or owner-occupied.

2) Models for affordable housing: Community Land Trusts or municipal housing funds that remove land from the speculation market and secure permanently affordable rents.

3) Speeding up construction and strengthening craftsmanship: Support programs for prefabricated but locally adapted housing modules and training initiatives for construction workers so that not only external companies serve the market.

4) Usage rules and transparency: A more binding registration requirement for primary residences versus second homes and stricter controls on vacant properties could help mitigate seasonal emptying.

Why acting now makes sense

The new figures are likely to make market realities visible faster; sellers who insist on unrealistic demands will come under pressure. At the same time, some coverage points to changing trends in foreign purchases, for example Fewer Foreign Buyers — Mallorca between Price Boom and a Breather. The planned household survey (over 4,500 households, including a sample of around 1,200 people aged 18 to 44) is an opportunity: the data can reveal concrete needs — from the backlog in renovations to the demand for small, affordable apartments.

A possible scenario

Instead of continuing to talk only about bans, a pragmatic approach would be wise: pilot projects in affected municipalities, combined with targeted funding measures and clear rules for second homes. That way villages like Fornalutx or Pollença could retain their character without losing the economic benefits of an attractive real estate market. Easier said than done — but also easier if action begins now.

In the end the question remains: do we want places that only exist in high season, or villages with a real, year-round community? The answer is decided at the municipal level, in town councils and on the market — and between a sale and the key the next buyer will turn.