Government legislates to build 10,000 affordable homes in Palma

The creation of Strategic Residential Projects that will speed up planning

Buildable areas and densities are to be increased. | MDB

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On Friday, the Balearic Government approved a decree law that will rapidly speed up the building of new homes in Palma and ensure that half of them are of an affordable nature.

The intention is to build 20,000 new homes, 10,000 of which will be either protected housing (VPO) or limited-price homes. The prices for both categories are set according to government guidelines and are below market values. It hasn't been stated if these 10,000 homes will be for rent or for sale or a mix.

The government is to create so-called Strategic Residential Projects (PRE is the Spanish acronym). These will allow the process of building on land designated for development to be accelerated. It is typically the case that planning procedures plus the actual development project can take up to ten years. With a PRE, the different procedures can be undertaken as one, reducing the timescale to some 18 months or two years.

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In the case of Palma, the land is available, a further adjustment being that the buildable areas and densities will be increased. This PRE approach, it would appear, won't only apply to Palma, the government saying that planning procedures in the Balearics as a whole will be accelerated.

The decree has certain stipulations with regard to prospective occupants of the Palma new homes, such as a minimum five-year residency in the municipality. This will also apply to new affordable homes elsewhere in the Balearics. 30% of limited-price homes will have to be for people under the age of 35.

Parliament will have to approve this decree, the housing minister, José Luis Mateo, hoping that the Partido Popular will be able to count on the support of other parties.