The Govern, led by the Partido Popular, and the Vox parliamentary group have finally reached an agreement to facilitate the approval of the Decree-Law on Strategic Residential Projects (PRE), aiming to allow the creation of more than 10,000 affordable homes in the municipality of Palma. This agreement was reached after Vox initially opposed the Consell de Govern’s text, but the adoption of several modifications helped unblock the negotiation, such as the extension of the PRE figure to other municipalities in the Balearic Islands with more than 10,000 inhabitants and the introduction of measures against squatting.

Strategic Residential Projects

Photo: CAIB.

This agreement guarantees the ratification of this Decree-Law, which will be put to a vote this Tuesday in the Parliament of the Balearic Islands, and its processing as a draft law in the Chamber, where the agreed measures will be incorporated into the regulatory text through amendments.

The impact of the PRE is estimated to create up to 20,000 homes in total in Palma, of which at least 10,000 will be designated for affordable housing, with an expedited process that will significantly reduce current timelines.

Main measures of the PRE:

  • Extension of the PRE: The agreement extends the PRE figure to municipalities with more than 10,000 inhabitants in the Balearic Islands, not just Palma, facilitating the creation of affordable housing projects in more locations.

  • Protection housing reserve: 50% of the homes generated through the PRE will be allocated to public protection housing (VPP) or limited-price housing (VPL). Additionally, developers will have to transfer 15% of the urban development benefit to Palma City Council for the construction of more public housing.

  • Reserve for public servants: A housing reserve for public servants, including law enforcement, healthcare workers, teachers, and other public employees, has been agreed upon to facilitate their access to affordable housing.

  • Residence requirements for VPP and VPL: The agreement establishes that applicants for public protection housing must have at least 5 years of residence in the municipality where the promotion is located.

  • Measures for young people: 30% of the limited-price housing in a promotion will be reserved for those under 35 years of age for the first two years of the new construction.

  • Development of strategic land: The density in Strategic Land Reserves (RES) will be increased, enabling the construction of more homes without the need to expand the urbanisable territory.

  • Measures against squatting: As part of the agreement, measures have been introduced to limit access to housing aid and the possibility of accessing protected homes for individuals convicted of squatting crimes. Economic compensation is also foreseen for those affected by squatting cases, covering the costs incurred due to these acts.