The proposed development could deliver around 300 homes, according to Ibiza and Formentera architects' president Lluís Oliva, who says planning delays, construction costs and urban regulations remain major obstacles to expanding the island's housing supply.

Construction of the first strategic residential project proposed for Ibiza Town could begin in early 2028, according to Lluís Oliva, president of the Ibiza and Formentera branch of the Official College of Architects of the Balearic Islands (COAIB).

Speaking in an interview on Televisió d'Eivissa i Formentera's Bona nit Pitiüses programme, Oliva said the development was expected to provide around 300 homes, although the final number could be somewhat lower.

The project forms part of the Balearic Government's strategic residential project framework, designed to help increase the supply of housing, including homes offered at regulated or limited prices.

However, the proposed timetable remains a forecast rather than a confirmed construction start date. Oliva warned that lengthy planning and licensing procedures continue to delay residential developments across Ibiza.

Planning Delays Continue to Hold Back Housing Development

Oliva identified urban planning bureaucracy and difficulties adapting regulations to the specific circumstances of Ibiza and Formentera as two of the main obstacles to increasing the housing supply.

He estimated that obtaining a building permit can take between three and four years, creating uncertainty for architects, developers and prospective homeowners.

During these delays, construction costs and economic conditions can change, making projects more difficult to deliver and potentially affecting the prices ultimately paid by buyers.

The COAIB representative called for simpler planning regulations developed with input from architects and other professionals who work directly with residential projects.

He also cautioned that relying solely on declarations of responsibility signed by technical professionals would not necessarily solve the problem, particularly when the rules are interpreted differently by local authorities and practitioners.

Strategic Residential Projects Could Help Expand Affordable Housing

The Balearic Government introduced strategic residential projects as a mechanism for facilitating new housing developments.

Oliva believes the framework could help address Ibiza's housing shortage, but argues that its rules do not adequately reflect the islands' particular urban planning conditions.

He said the framework had been designed primarily with Palma in mind before being extended to other municipalities with different characteristics.

Sant Josep de sa Talaia was one example he highlighted, noting that many peripheral areas consist of detached houses, which can make it more difficult to meet some of the requirements for strategic residential developments.

Despite these criticisms, Oliva described the initiative as a useful starting point for increasing the availability of affordable housing.

The exact number of homes that can ultimately be delivered will depend on the approval and development of individual projects. The regional government's housing observatory notes that proposed areas and housing figures remain provisional until each project receives final approval.

Architects Call for Better Use of Existing Urban Land

Oliva argued that Ibiza should make more effective use of its limited territory rather than relying on further expansion into undeveloped land.

One of his proposals is to reconsider urban planning rules that restrict building heights, allowing taller residential buildings where appropriate and technically feasible.

He pointed to hotels in Platja d'en Bossa that reach six floors or more, arguing that residential development could also benefit from a review of the opportunities for building upwards.

The objective, he explained, would be to accommodate more homes within existing urban areas while limiting pressure to develop additional land.

His position reflects the wider challenge facing Ibiza: increasing the supply of housing for people who already live on the island while balancing development with the protection of its limited territory.

Housing Policy Must Address Permanent Residents

The COAIB president also questioned approaches that focus primarily on seasonal workers when discussing Ibiza's housing crisis.

He argued that housing measures must also address the needs of people who live on the island throughout the year, including residents who struggle to find suitable accommodation or achieve independent living.

Oliva referred to people living in precarious conditions and argued that the housing problem cannot be understood solely through the seasonal tourism calendar.

He also rejected the idea that the public administration should be solely responsible for delivering affordable homes.

In his view, private developers could play a significant role if projects are financially viable and the regulatory framework supports their delivery.

Oliva distinguished between social housing intended for people on lower incomes, which may require public funding, and homes for workers with some capacity to pay, where private-sector participation could help expand supply.

Construction Costs Add to the Housing Challenge

The cost of building homes is another major concern.

Oliva estimated that construction costs for multi-family residential developments stood at approximately €2,000 to €2,100 per square metre, depending on the quality of the materials and the characteristics of the project.

For a medium-sized detached house, he warned that construction costs could reach €500,000.

These estimates illustrate the financial challenges facing households seeking to build their own homes in Ibiza, where land, planning requirements and construction expenses can make residential projects difficult to afford.

A Potential Step Towards Increasing Ibiza's Housing Supply

The proposed strategic residential project in Ibiza Town could become an important development within the island's efforts to increase housing availability, but its delivery will depend on the progress of the planning and approval process.

Oliva's projected early-2028 construction start remains conditional, and the final number of homes has not been established.

His comments also underline the broader debate over how Ibiza can deliver more affordable housing: simplifying planning procedures, reviewing urban development rules, making better use of existing land and enabling both public and private initiatives to contribute.

For now, the proposed development represents a potential step towards expanding the island's housing supply, rather than a completed or fully approved solution to its housing shortage.