This Thursday, the Ibiza City Council will present a €4.7 million budget amendment to the full council to bolster the municipal public housing stock and advance the regeneration of Sa Penya. The measure will allow for 2.9 million to be allocated for the purchase of homes or residential buildings and another 1.8 million for the restoration of municipal properties in the neighborhood’s UA 2-3.
The measure represents the implementation of one of the housing investments announced by the City Council last June, when it outlined its intention to allocate 4.7 million euros of the municipal surplus to bolster housing policies aimed at the city’s residents.
The budget amendment, which will initially be implemented through extraordinary appropriations and financed with surplus cash, thus channels funds into two areas: the incorporation of existing homes into the municipal housing stock and the rehabilitation of public properties for subsequent use as social housing.
First Deputy Mayor and Councillor for Economic Resources, Gema Marí, described the initiative as a way to “transform the City Council’s solid financial situation into solutions for one of the main problems our residents face today: access to housing.”
“We don’t want housing to be just a topic of debate. We want to secure land, restore heritage buildings, build, renovate, and also purchase housing when necessary. We have the resources and the management capacity, and we put them at the service of our neighbors,” Marí added.
Priority for residents
The largest grant, amounting to 2.9 million euros, will allow the City Council to acquire housing or residential buildings to incorporate them directly into the municipal housing stock. According to the explanatory memorandum, these properties can be used for public housing policies, preferably through affordable or social rental programs and in accordance with the criteria and procedures that the Council will establish later. The municipal documentation also gives priority to residents who have been registered as residents of the municipality for at least ten years.
The strategy therefore combines the promotion of new housing with the acquisition of existing properties, an approach that allows adding residential units to the social housing stock without relying exclusively on new developments. The same report presents acquisition and rehabilitation as complementary tools to expand this stock.
“There is no single solution to the housing problem, which is why we are using all the tools at our disposal. Building social housing is essential, but we also need to recover municipal housing, make land available, and explore the acquisition of properties that can be used to serve public policy,” Marí explained.
Complete renovation of Sa Penya
The remaining 1.8 million euros will be allocated to the comprehensive rehabilitation of the municipal buildings included in UA 2-3 of Sa Penya. The preliminary project prepared by the municipal technical services provides for a change of use and the rehabilitation of the complex, with the creation of five social housing units.
The project aims to preserve the building’s layout, volume, and protected heritage elements. The City Council is currently working on preparing the basic and detailed design documents.
The project will allow for the recovery of municipal properties within a protected historic zone, while restoring them to residential use. It is part of a series of initiatives that the Council has carried out in Sa Penya as part of the ‘Eivissa, a city to live in’ plan, including the rehabilitation of municipal housing and the addition of properties to the affordable rental program.
In June, the process of assigning seven municipal rental housing units in the neighborhood was completed, while in July a tender was launched for the rehabilitation of another municipal property located on Travessia de sa Penya.
Focus on youth
The Housing Councilor, Lola Penín, described the new investment as part of a broader strategy aimed at facilitating housing access for residents of Ibiza, with a particular focus on young people.
“We want an Ibiza where our young people can study, work, start a family, and plan a life without having to assume that one day they will have to leave because they can’t afford housing. This is the ultimate meaning of ‘Ibiza, a city to live in’: that this city continues to be a city to live in,” said Penín.
The City Council has already incorporated criteria related to length of residence into its municipal housing programs. In the call for applications for the first seven social rental housing units under the program, one of the requirements was that applicants had been registered as residents of the municipality for at least ten years, while three of the seven units were specifically reserved for young people from the municipality.
“Our local government policy is clearly focused on the people who live, work, and build their lives in Ibiza. Within the limits permitted by the regulations for each initiative, we will continue to ensure that this Council’s efforts and resources are prioritized to meet the needs of our residents,” Marí added.
The operation is based on the broader scope provided by Royal Decree-Law 13/2026 of June 2, which allows local authorities with a surplus to use these resources for economically sustainable investments. The legislation was approved by Parliament on June 18 and allows, among other measures, the allocation of a portion of the surplus to investments, including housing projects.
For Marí, the City Council’s financial situation must translate into investment capacity: “Having healthy finances is not an end in itself; it makes sense when this financial stability allows us to address the real problems of the city. Today we can allocate an additional 4.7 million euros to housing because we have managed public resources responsibly, and now those resources are returning to the citizens in the form of investment.”
The 4.7 million are part of the “Ibiza, a City to Live In” plan, which brings together various initiatives related to construction, renovation, heritage restoration, and the transfer of land for social housing. In June, the City Council had already announced this amount as a new resource fund to bolster its housing policy.
There is no magic solution to the housing problem. It takes a lot of effort, short, medium, and long-term planning, investment, and perseverance. And that’s what we will continue to do: project by project, home by home, and using all the tools at our disposal to ensure that living in Ibiza continues to be a real possibility for our residents,” concluded Penín.