Palma Plaça Major traders - "We're being ripped off"

Valuations are way off what owners believe premises are worth

Architects' image - the underground level will be mostly uncovered.

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Owners of premises in the Plaça Major underground shopping area are still waiting for news from Palma Town Hall regarding the expropriation of their properties, the town hall having last week presented images of the architectural plan for the redevelopment of the square both above and below ground.

Underground level at Plaça Major in Palma, Mallorca
The underground level will be converted into a "square within a square" and most of it will be uncovered. Photo: Patricia Lozano.

Most of the units had tenants. The keys were handed in to the town hall several years ago. But there were others with private owners, and it is they who feel that expropriation offers thus far amount to a rip-off. An initial town hall valuation was 1,880 euros per square metre. A more recent one increased this to just over 2,000 euros. "Still not enough," says one of the owners.

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A third offer will in any event have to be made, as the period of validity for the second valuation has expired. "We want a market price. It cannot be that premises are being sold on third-class streets of the city for €5,000 per square metre." The owners argue that, by contrast, their premises are in a "strategic area", the town hall itself having spoken about the Plaça Major in these terms.

"We're not talking about a basement, but rather a shopping mall in the centre of Palma that was doing very well until the very day units were abruptly closed." That was in September 2019.

"The mayor says the redevelopment work will begin in the last quarter of 2026, so we don't know what they're waiting for. We want a fair price." The owners' association is consulting a law firm in continuing negotiations with the town hall, a process that has now been going on for more than five years.