4,000 new homes in the Balearics at risk because of a Spanish government objection

The housing emergency decree is deemed to have been unconstitutional

A closed commercial unit in Palma, Mallorca

The decree allows for the conversion of commercial premises. Palma town hall formally approved the decree's provisions last week. | Jaume Morey

Andrew EdePalma13/08/2024 07:22

One of the current Balearic government's flagship policies - limited-price housing - is at risk because the Spanish government has questioned the legislative process that introduced this. It was by decree, Madrid arguing that this was not the way of going about this.

Last autumn, the Balearic government approved its housing emergency decree. This established the concept of limited-price housing, applying it to initiatives such as the conversion of commercial premises into residential accommodation. The limited prices for the sale or rent of this accommodation are set by the government.

On Monday, President Marga Prohens accused Pedro Sánchez of putting 4,000 new homes at risk. The Spanish government has challenged the decree mechanism for these new properties on constitutional grounds.

There will therefore have to be a bilateral commission comprising representatives of the two governments in order to try and arrive at a solution. If not, the matter will be referred to the Constitutional Court in Madrid. If that happens, the legislation will be automatically suspended until the court issues its ruling. This could take months.

Prohens says that the Spanish government is putting "a spoke in the wheel" when her government is addressing "one of the main problems in the Balearics, which is housing." She believes that Madrid is being irresponsible. "We will defend our policies where necessary and we will continue working for the change in the housing situation in the Balearic Islands."

The Spanish government argues that a temporary law, the decree, is not the right mechanism and changes to regulations must be reflected in individual town halls' urban plans.

While this may appear to complicate the possibility of these new homes coming onto the market urgently, the fact is that the decree's provisions have to be approved (or not) by town halls. Some have given their approval, others are still considering approval, while there are cases of town halls rejecting the provisions.

Whether 4,000 is a realistic figure is a matter for debate, but a Spanish government objection because of a constitutional technicality will have many people in the Balearics - not just the government - wondering why.