Balearic Islands president Marga Prohens criticised the Spanish Government's latest housing measures during a visit to Ibiza, warning that the new rules could reduce the supply of rental properties and make it harder for residents to find affordable accommodation.

Speaking on 1 October at the ceremony marking the start of construction of 48 public rental homes in Can Cantó, Ibiza, Prohens claimed that rental properties had already been withdrawn from the market following the approval of two housing decrees by the Spanish Council of Ministers.

"The rental today in the Balearics is more expensive than last week," Prohens said, arguing that people looking for affordable housing were now facing fewer options.

Her comments came shortly after the Spanish Government approved the two measures and one day before their scheduled consideration by Congress.

Prohens Links New Measures to Rental Supply

Prohens argued that the measures could create greater uncertainty for property owners and discourage some landlords from offering homes for rent.

She said the Balearic Government had already seen what she described as a number of rental offers being withdrawn from the market and maintained that the region needed more housing supply rather than measures she believes could reduce the number of properties available.

The president also said that 96% of property owners in the Balearics are families or small landlords, using this figure to argue that the measures could have a direct impact on individual property owners.

That figure and Prohens' assessment of the likely effect of the legislation were presented as part of her political argument. They do not establish that rents across the Balearics had objectively increased during the week or that the decrees had caused rental listings to fall.

The Measures Approved by the Spanish Government

The two Royal Decree-Laws were approved by the Council of Ministers on 29 September.

The first, Royal Decree-Law 26/2026, included measures covering the protection of vulnerable tenants, temporary and room rentals, affordable housing and certain property acquisitions. It also included measures related to public housing and tax policy.

The second, Royal Decree-Law 27/2026, focused specifically on the stability of habitual rental contracts.

Among its provisions was an extraordinary extension mechanism under which eligible tenants with contracts running until 31 December 2028 could request extensions of up to two additional years, subject to the conditions established by the decree.

The second decree also proposed changes to the rules governing the renewal of rental contracts and increased the notice period for landlords in certain circumstances.

The Government's Position

The Spanish Government presented the measures as an attempt to strengthen tenant protection, increase the supply of affordable housing and provide greater stability in the rental market.

The first decree also included measures concerning temporary rentals and room rentals, with the stated aim of addressing fraudulent use of these arrangements and strengthening the protection of tenants.

The Government also proposed extending certain protections against evictions involving vulnerable households without an alternative housing solution.

These objectives differ from Prohens' assessment that the measures could reduce rental supply.

The Congress Vote Changes the Situation

The situation changed on Friday, 2 October, when Congress rejected both decrees.

The first Royal Decree-Law was rejected by 178 votes to 172, while the second received 166 votes in favour and 184 against. Both therefore failed to obtain the necessary parliamentary support.

As a result, the measures contained in the two decrees did not remain in force as approved by the Council of Ministers.

The votes also highlighted the divisions between the Government and several parliamentary groups over how the housing crisis should be addressed.

Prohens Has Opposed Rent Control in the Balearics

Prohens has also reiterated the Balearic Government's opposition to declaring residential areas as "tensioned" under Spain's housing legislation.

The regional government has chosen not to apply the mechanism for limiting rents in designated stressed housing markets, arguing that it could reduce the supply of rental properties.

Prohens has instead argued that increasing the number of homes available is the more effective way to address the imbalance between supply and demand.

This is the position of the Balearic Government rather than an established assessment of the effectiveness of rent-control measures.

Housing Remains a Major Issue in Ibiza

Prohens' comments were made during a visit connected with a separate housing project in Ibiza.

The Govern has begun construction of 48 public rental homes at Can Cantó, on a site in Ibiza Town provided by the municipality.

The homes will be aimed preferentially at people who can demonstrate at least ten years of registered residence in the municipality of Eivissa. The project has a construction budget of approximately €9.8 million excluding taxes and an expected construction period of 19 months.

The Govern says the Can Cantó development forms part of a wider programme involving more than 1,200 affordable homes planned for residents across Ibiza.

The Focus on Increasing Supply

The Balearic Government's housing strategy under Prohens has focused on increasing the number of public homes, working with private developers and encouraging the release of additional properties onto the market.

Prohens has also proposed measures including reductions in tax costs for young people purchasing their first home.

Her argument is that the fundamental problem is an imbalance between the number of homes available and demand for them.

The Spanish Government, meanwhile, has presented its rejected decrees as a combination of tenant protection, rental-market regulation and measures designed to increase affordable housing.

What Happens Next

The rejection of the two decrees means the measures approved by the Council of Ministers on 29 September did not receive parliamentary approval.

For the Balearic Islands, the debate over housing policy therefore continues around two contrasting approaches: the regional government's emphasis on increasing supply and providing greater security for landlords, and the Spanish Government's proposed combination of tenant protections, rental regulation and affordable-housing measures.

For Ibiza residents, where access to housing remains a significant issue, the practical question will now be what measures are introduced next and how the different administrations respond to the island's shortage of affordable homes.