Five municipalities in the Balearic Islands to build new public developments

Sustainable housing development spreads across Mallorca and Menorca

What does it consist of?

Given the growing difficulty for many to become home owners, especially in areas saturated by tourism, the Balearic Housing Institute (IBAVI) is promoting the construction of 53 public housing units and 35 special-purpose housing units for rent. The developments are located in five municipalities in Mallorca and Menorca and will be built using energy efficiency criteria.

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Data

PROJECT TITLE IN THE CALL
Development of 53 subsidised social housing units and 35 institutional rental units in Majorca and Menorca
LOCATION
Mallorca, Minorca
Entity submitting the PROJECT
Govern de les Illes Balears
Entity that executes the project
Institut Balear de l'Habitatge (IBAVI)
Project code
ITS2023-044
Total project amount
20.135.097 €
ITS granted amount
13.151.862 €
Executed amount
2.189.667 €
Call year
2023
Budget implementation status
In execution
Purpose
Social welfare
Budget execution
Executed: 16.65%
Last updated
26.02.2026

The project

The pressure on the property market in the Balearic Islands has caused purchase and rental prices to skyrocket, placing the region among the most unaffordable in Spain. In this context, the construction of public housing has become a structural necessity. To this end, a series of new developments have been planned in Sa Pobla, Sencelles, Peguera, Sant Lluís and Alaior.

In total, 53 social housing units and 35 special-purpose housing units will be built, all of which will be rented out. The IBAVI will take care of managing the housing units, with each development addressing specific local needs. For example, in Sencelles and Calvià priority will be given to young residents, while in Alaior preference will be given to vulnerable groups.

All buildings will comply with the sustainability criteria required by Balearic and European legislation: low environmental impact materials, almost zero energy consumption and passive ventilation and lighting systems. Construction will be carried out on land provided by the local councils, which has made it possible to reduce costs and strengthen institutional collaboration.

The developments will also help boost local economic activity in the construction sector and reinforce the public housing stock, which is currently not big enough to meet the ever-growing demand.