On October 2, 2023, the Balearic Government issued an emergency decree creating the figure of limited price housing (VPL). “They will be the new housing created from the different measures regulated by this decree-law that make it possible to go beyond the limitations established by urban planning in reference to the uses, residential densities, buildability and maximum heights allowed,” the text said.
Taller buildings, conversion of premises into housing, division of large housing units into smaller ones were the instruments put at the service of private initiative. For the public initiative, the decree facilitated the transfer of plots of land classified as equipment to developers to be rented at a limited price. The measures of the decree, approved in 2024 by the Balearic Parliament, aimed at private initiative have been a failure in Ibiza. Especially considering the high demand for housing on the island. Only a handful of projects is the balance in 15 months of validity.
By municipalities
The text of the decree clarifies that “in general, and also in particular for each of the measures, the decree-law is immediately effective, but empowers the municipalities, competent in urban planning, to agree its limitation (or non-application) in a generic or specific way in a certain area for the reasons it deems appropriate”. According to data gathered by La Voz de Ibiza from the five town halls of Ibiza, this group of measures has barely created a handful of new homes. To wit:
- Sant Joan. From the City Council have reported that there were only two files in this line, which allowed three new homes to “emerge”. “The rest of the files are extensions of housing, annexes,” etc., reported from the municipality.
- Ibiza. The measures have not yet made it possible to provide more housing. “Although consultations have been made, no change of use has yet been processed that would allow the creation of new unbuilt housing,” they have pointed out from the City Council.
- Santa Eulària. There is only one change of use file for housing, which is in process.
- Sant Antoni. From the City Council have explained: “The Planning of Sant Antoni already allowed the change of commercial premises to housing, therefore, the decree 6/2023 of urgent measures in housing, in this area, would not affect the municipality”. They have even remarked that it seeks to “prevent in the area of the old core (CA1 and CA2), the change of use of local to housing on the first floor.” That is why, “with the aim of preserving the business and commercial fabric of the old town, as in recent years there has been a trend of change of premises to housing”, a specific modification of the General Urban Development Plan (PGOU) was approved.” In fact, the change of use of premises to housing went from 3 in 2022 to 11 in 2024. In other words, although the change of use has grown, it is not directly due to the emergency decree, but it was a trend that was already allowed.
- Sant Josep. The City Council is still working on compiling the data requested by La Voz de Ibiza.
“Trickle-down measures.”
When asked by La Voz de Ibiza, the Ministry of Housing, Territory and Mobility of the Balearic Government has admitted that measures such as the conversion of premises into housing or subdivisions are “trickle-down measures”. On the other hand, they emphasize that the decree lays the groundwork for increasing the supply of affordable housing. The bet is on the changes in land use indicated in the decree. From there, the Government is developing the Build to Rent program, in agreement with different municipalities. Within this framework, agreements have been announced with the Town Councils of Ibiza and Santa Eulàriafor the construction of 600 homes. More than 4,000 new homes are expected to be built throughout the Balearic Islands. These plans were in doubt until the end of last year due to a dispute with the central government, which had warned about the possible unconstitutionality of the decree. The Executive of Pedro Sánchez had pointed out that measures such as those proposed by the decree should be done through the planning of each town hall and had threatened to file an appeal with the Constitutional Court. The Govern, on the other hand, pointed out that this would have delayed a lot of time in the face of a crisis, such as the housing crisis, which cannot wait. Finally, the central government and the Balearic Government reached an agreement to save the housing emergency decree.
