Construction of 35 Public Housing Units in Es Molinar to Tackle Residential Exclusion

The Government is building a new subsidised rental building with ocean views in Palma

What does it consist of?

The strain of tourism in Mallorca has pushed up rental prices, reducing access to housing for a large part of the population. In response, 35 social rental housing units are being built in Es Molinar in line with energy efficiency standards, together with a senior wellness centre.

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Data

PROJECT TITLE IN THE CALL
Development of 57 social housing rental homes on Carrer Cuba, 7 Es Molinar de Palma
LOCATION
Mallorca (Palma de Mallorca)
Entity submitting the PROJECT
Govern de les Illes Balears
Entity that executes the project
Institut Balear de l'Habitatge (IBAVI)
Project code
ITS2019-047
Total project amount
5.163.434 €
ITS granted amount
5.163.434 €
Executed amount
2.399.323 €
Call year
2019
Budget implementation status
In execution
Purpose
Social welfare
Budget execution
Executed: 46.47%
Last updated
26.02.2026

The project

Access to housing in the Balearic Islands has emerged as a systemic challenge. The high demand from tourism and the scarcity of affordable supply mean the islands have the worst housing affordability index in Spain, according to official data. Faced with this situation, the Balearic Government is promoting new public developments to make renting easier for particularly affected groups.

This includes the construction of 35 homes at No.7 Carrer de Cuba, in the neighbourhood of Es Molinar (Palma). The Balearic Housing Institute (IBAVI) is leading the project with a budget of over €5 million, entirely funded by sustainable tourism tax. Beyond housing, the project also includes a senior wellness centre and other premises on the ground-floor.

This action reflects a model of housing that prioritises energy efficiency and residents’ well-being. The building will have an ‘A’ energy rating, thus meeting European emission reduction targets. The homes, located on the upper floors, are designed for residents to enjoy the sea views and summer breeze, reducing reliance on artificial air-conditioning systems.

The development responds to a growing social need. In 2019, more than 9,000 people were registered as applicants for subsidised housing in the Balearic Islands. In Mallorca alone, the number of applications was over 5,800. This type of project aims to reduce this pressure and move towards fairer, stronger urban planning adapted to the real needs of citizens.