Construction of Eight Public Housing Units for Rent in S’Olivera

A new IBAVI building improves access to housing in Palma with a focus on sustainability

What does it consist of?

In s'Olivera, a neighbourhood in Palma, a new development of eight public housing units for social rentals has been introduced. Promoted by IBAVI and funded by sustainable tourism tax, the project seeks to provide more housing and ensure sustainability in terms of both energy and the environment.

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Data

PROJECT TITLE IN THE CALL
Development of eight homes Palma, Mallorca
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
ITS2019-050
Total project amount
834.521 €
ITS granted amount
834.521 €
Executed amount
834.521 €
Call year
2019
Budget implementation status
Executed
Purpose
Social welfare
Budget execution
Executed: 100%
Last updated
08.05.2025

The project

The Balearic Islands is dealing with huge strain on its property market. Pressure from tourism, coupled with a lack of affordable supply, has placed the islands at the bottom of Spain’s housing affordability index. Rents have increased by an average of 22% per year and the chances of finding housing are shrinking, especially for those with fewer resources.

In this context, urgent public action in housing is needed. On the street corner between Carrer Josep Togores, and Carrer Teresa Maria Ponce de León, the Balearic Housing Institute (IBAVI) has developed eight social housing units, all one-bedroom and adapted to accessibility standards. The plot was granted free of charge by Palma City Council and is located in the city’s outskirts, a short distance from La Femu Park.

The building prioritises low energy consumption and energy efficiency. It has a sustainable design that reduces energy demand to less than 17.20 kW/m² per year. This includes cross ventilation, solar shading, solar panels and solutions that allow rainwater to be reused. Waste and emissions have also been minimised during construction.

Beyond providing public rental housing, the development serves as a model for future construction with less environmental impact. In total, €834,521 of public funding was granted, with a 100% of budget already executed. Although a small action, it is significant in a region where access to decent housing has become a major social issue.