Balearic government officials have finalized a deal to transfer 33,131 square meters of public land in Palma for the development of 323 new homes, marking one of the largest public housing initiatives currently underway on the island.
Free transfer of land to IBAVI
The agreement, signed by Balearic Islands President Margalida Prohens and Mallorca Island Council President Llorenç Galmés, designates the Sant Ferran area for the project. The land, valued at roughly €4.6 million, is situated between the Sant Ferran sports centre, the Llar de la Infància and Llar de la Joventut facilities, and the Illes Balears Velodrome. The Balearic Housing Institute (IBAVI) will assume responsibility for the urbanization and construction of the residential complex, with the transfer of the property free of charge.
The scheme is set to become one of the largest public housing projects currently being advanced in Mallorca and is intended to significantly increase the supply of affordable housing in Palma. The homes will be allocated to citizens with at least 15 years of residency in the Balearic Islands. Margalida Prohens emphasized that the initiative aims to provide housing for residents already established on the islands rather than attracting new population growth to areas that have reached their limits.
The initiative is part of the regional government’s broader “Illes en transformació” infrastructure investment plan and housing action plan. Officials state that public development is a central pillar of their strategy to improve access to affordable housing for existing residents rather than attracting new population growth.
Strategic residential project status
Authorities plan to classify the development as a strategic residential project to speed up the administrative process. The goal is to begin the necessary steps during the current legislative term. IBAVI is already advancing more than 1,200 public homes across various new developments in the Balearic Islands, though this specific project would stand out for its size and location.
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While the primary focus is residential, the agreement includes provisions for social and cultural infrastructure. IBAVI will also transfer 35 protected public homes to the Mallorca Island Council for social use. This allocation consists of 15 one-bedroom units, 12 two-bedroom units, and eight three-bedroom properties.
In addition to housing, the council will receive a ground-floor space of approximately 400 square meters designated as a rehearsal venue for music groups, along with a 3,000 square meter plot intended for childcare facilities and other uses.
The development will therefore combine the delivery of public housing with additional infrastructure for social services, culture and childcare. The project forms part of the Balearic Government’s “Illes en transformació” infrastructure investment plan and its housing action plan. Public development is one of the key pillars of the government’s strategy to improve access to affordable housing for existing residents.
According to the regional government, IBAVI is currently advancing more than 1,200 public homes across new developments in the Balearic Islands.
