Government's public housing plan for Mallorca

The Conselleria d’Habitatge plans to exercise its right of first refusal when real estate transactions take place between banks and large holders.

The approval of the decree law on urgent housing measures just before the State of Emergency was declared gives the Government the option to expand its public housing stock and prevent properties being snapped up by vulture funds.

Part of the money set aside will also be used to pay the rent for the flats owned by large holders listed on the register of empty homes.

The Government already exercises its right of appraisal and withdrawal when a VPO home is put up for sale and has regained ownership of 20 homes that would otherwise have passed directly into private hands.

The aim of the Conselleria d'Habitatge is to expand public housing stock and prevent a repeat of what happened in the last legislature, when 5,484 VPO homes passed into private hands after the deadline.

Under the new Housing Law, newly built VPOs will always be publicly owned and cannot be sold on the open market, so the property must be sold at a discounted price and offered to the Government first.

The Government currently has 1,700 properties, expects to have another 502 homes up and running by the end of this year and double its public housing stock by the end of the legislature.