The Government of the Balearic Islands and the central government have reached an agreement that allows to save the housing emergency decree, clearing the way for the construction of up to 4,000 new homes on the islands, including 750 planned in Ibiza. The pact avoids the threat of an appeal to the Constitutional Court raised by the Executive of Pedro Sánchez, who had pointed out possible unconstitutionalities in the autonomous regulation.
According to Última Hora, the negotiations between both administrations have allowed to solve the technical and legal discrepancies, ensuring the viability of one of the most important laws of the Govern led by Marga Prohens. Here we explain the key points of the agreement that unblocks the decree. At the moment, the measure that is having the most impact in Ibiza is the use of plots of land destined for equipment for the construction of housing. Local councils have imposed restrictions on the conversion of premises into housing and on raising the height of buildings.
Extra income for municipalities
One of the points of conflict was the need to compensate for the increases in urban development derived from the decree. According to the State Land Law, changes of use, increases in buildability or increases in the number of dwellings require a transfer to the Administration.
- The agreement establishes that these increases will be economically compensated through a payment of 0.5% of the maximum sale price of the new housing units to the corresponding municipality, in cases where the transfer of physical land is not feasible.
Modification of the Urban Planning Law of the Balearic Islands.
The Government is committed to introduce technical adjustments to the Urban Planning Law of the Balearic Islands. These changes will ensure that local councils can justify the change of use of land intended for facilities to build housing. In addition:
- These modifications must be incorporated in the municipal urban planning in the first revision subsequent to the actions.
Justification of the legislative route
Another sticking point was the use of an emergency law to approve measures that, according to the central government, should be included in municipal urban plans. The Government justified this route by arguing that it allows greater agility in responding to the housing crisis. The decree includes mechanisms to guarantee the urban planning balance and compliance with state regulations, such as the compensation of the administration for the use of the land.
Measures included in the decree
The decree, which is already in force, contains innovative solutions to increase the supply of housing in the Balearic Islands:
- Construction of more heights in existing buildings.
- Division of large dwellings to create two independent units.
- Conversion of commercial premises into residential housing.
- Creation of affordable housing.
- Promotion of the ‘Build to Rent’ program , which promotes collaboration between the Government and local councils for the transfer of public land for subsidized housing.
Impact of the agreement
Thanks to this understanding, the decree, according to the Government’s estimates, will allow up to 4,000 new homes to be put on the market on the islands, of which some 2,400 are already in the administrative process. This agreement guarantees the viability of the measures and reinforces institutional collaboration at a critical moment for housing in the Balearic Islands.
