El City Council has launched a Housing Shock Plan which includes the construction of nearly 2,000 affordable homes in Palma, aiming to address the growing demand for reasonably priced rentals in the city.

The homes will have regulated rents ranging from €650 to €1,100 and will offer advantages compared to private housing, such as exemption from paying property tax (IBI). Additionally, the plan reserves at least 30% for young people up to 35 years old, 10% for people over 65, and another 10% for single-parent families.

The Deputy Mayor for Urban Planning, Óscar Fidalgo, emphasised that “this government team continues to support the construction of social housing on both municipal and designated land”. In the coming months, construction will begin on 166 homes on municipal land, while land designated for development is being prepared for around 1,200 new homes.

“After the last few administrations did not promote a single affordable home, this Shock Plan is a decisive step in making them a reality,” added Fidalgo.

First affordable homes in Palma: signing of deeds and start of construction

Today, Friday, Fidalgo signed before a notary the deeds of constitution and transfer of surface rights for lots 2 and 4 of the first phase of the Shock Plan. These plots, located in Camp Redó and Son Ferragut, were awarded to the company Locare Arpo 2D, responsible for promoting and managing 166 rental homes at limited prices.

affordable homes Palma

Deputy Mayor for Urban Planning, Óscar Fidalgo (centre), during the signing of the public deeds corresponding to the first phase of the Housing Shock Plan. Photo: Palma City Council.

Lot details:

  • Lot 2 (Camp Redó): Bisbe Arnau Alberti Street, 17,992 m² of area, 5,969 m² of buildable space.

  • Lot 4 (Son Ferragut): Isabel Villena Street, 6, 6,837 m² of buildable space.

Home features:

  • 1 to 3 bedrooms, 45 to 70 m² of usable space.

  • Rents between €600 and €1,000, depending on energy efficiency.

  • Intended for young people, the elderly, and single-parent families, with registration requirements (5 years in Palma or 7 years in the Balearics).

Transparency and management commitments:

  • The IBI will be covered by the company and will not be passed on to tenants.

  • Maintenance and communal service costs detailed in the contracts.

  • Economic reports and annual budgets supervised by the City Council.

Fidalgo emphasised that the addendum included in the signing of the deeds demonstrates the social commitment of the awarding company and guarantees transparency in the management of these affordable homes in Palma.