Chaos has erupted in Palma, Majorca’s capital, as seas of businesses pack up and leave, leaving the capital ‘empty’.
Traffic congestion and eye-watering rental prices are the key reasons many businesses, including logistics and technology companies, have made the decision to move their operations elsewhere.
One town that is reaping the benefits is Inca, the third largest town in Majorca and one of the most well-connected places on island.
Sitting halfway between Palma and Pollensa, this predominantly residential and industrial area has become the new hub for “business and economic growth” thanks to recent large-scale renovation projects.
Its accessibility to public transport and new industrial estate spanning 180,000 square metres have proved appealing.
The mayor, Virgilio Moreno, said: “This is something we have been working on with investors, creating a true hub of public transport in Mallorca. We have a new station, the Inca Hospital station, and a bus interchange, closely linked to the new business growth areas.
“We are improving connections for our residents while also promoting the town’s economic and industrial growth.
“With the new industrial estate we will have 180,000 square metres available for companies and industries. What we are creating is a centre for business and economic growth.”
One thing that can’t be ignored is the staggering difference in prices.
On the property website Idealista, industrial sites in Inca are offered for sale at around €650 (£540) per square metre. On the Son Castelló industrial estate in Palma they are up to €3,000 (£2,500)
Technology group WDNA has maintained its headquarters on the ParcBit technology park in Palma, however, the business bought an industrial facility in Inca two years ago due to its “strategic location”.
Tomeu Guisscasre, one of the WDNA partners, said: “Our factory is 50 metres from the railway station.
“One of the handicaps of ParcBit is that it is isolated in terms of transport; the traffic jams are horrific. Many of our employees are from outside Palma and can’t avoid the jams at rush hours.”
