Ibiza Town Council is putting forward a €4.7 million budget modification to increase the city's public housing stock and rehabilitate municipal buildings in Sa Penya.

The proposal is due to go before the municipal plenary session on Thursday, September 24, for initial approval. It would be financed from the council's treasury surplus.

The investment is divided into two main areas: €2.9 million for the acquisition of homes or residential buildings and €1.8 million for the comprehensive rehabilitation of municipal properties in the UA 2-3 area of Sa Penya.

€2.9 million for additional public housing

The largest part of the proposed investment, €2.9 million, would allow the council to acquire existing homes or residential buildings and incorporate them into the municipal public housing stock.

According to the supporting documentation, the properties could subsequently be used for public housing policies, preferably through affordable or social rental programmes, under the conditions and procedures established by the council for each individual action.

The documentation also establishes priority for residents who have been registered in the municipality for at least 10 years, subject to the specific conditions of each programme and the applicable legislation.

The council presents the acquisition of existing properties as an additional tool alongside the construction of new public housing and the rehabilitation of municipal buildings.

€1.8 million for Sa Penya

The remaining €1.8 million is earmarked for the comprehensive rehabilitation of municipal buildings included in the UA 2-3 area of Sa Penya.

Municipal technical services have already prepared an initial project for a change of use and rehabilitation.

That proposal envisages creating five protected public housing units while maintaining the existing alignments, building volume and protected heritage elements of the site. Work is currently continuing on the basic and executive project.

The planned intervention would return the municipal properties to residential use while preserving the characteristics of the protected historic environment.

A project within Sa Penya

The UA 2-3 area is located in Sa Penya, one of the historic neighbourhoods of Ibiza Town.

The latest proposal forms part of a wider municipal programme that includes the rehabilitation of public housing, the recovery of municipal properties and the incorporation of homes into affordable rental programmes.

The council completed the process of allocating seven municipal affordable-rental homes in Sa Penya in June, while another municipal property in Travessia de sa Penya was put out to tender for rehabilitation in July.

What the five homes would be

The five homes included in the UA 2-3 project are described as public protected housing.

At this stage, they are part of the project's approved planning documentation rather than completed homes.

The municipality is currently working on the basic and executive project, so further technical and administrative steps will be required before construction or rehabilitation can be completed.

How the €4.7 million would be financed

The budget modification would be financed using the council's treasury surplus.

This is possible because Royal Decree-Law 13/2026 introduced exceptional provisions allowing qualifying local authorities to use surplus or treasury reserves for investment in housing. The legislation specifically includes housing within programme 152 and provides rules for carrying out such investments over more than one financial year where applicable.

The Ibiza proposal therefore uses a financing mechanism made available under the new national rules rather than relying on a separate housing grant.

Part of a broader housing programme

The €4.7 million proposal is being presented as another element of Ibiza Town Council's wider housing strategy.

The programme includes several different approaches: acquiring existing properties, rehabilitating municipal buildings, making public land available and developing new protected housing.

The latest proposal adds both acquisition and rehabilitation to those measures.

Initial approval is the next step

The key procedural step now is the municipal plenary vote on the budget modification.

The proposal must receive initial approval before proceeding through the remaining administrative stages.

This means the €4.7 million should currently be described as a proposed allocation rather than as funds already spent or projects already completed.

The same applies to the five protected homes in Sa Penya, which remain part of a project now being developed.

What the investment could add

The acquisition programme could add existing residential properties to the municipal housing stock, while the Sa Penya rehabilitation project is designed to convert existing municipal buildings into five protected homes.

The two measures therefore address housing through different routes: purchasing existing residential properties and recovering municipal buildings for residential use.

The council says the intention is to expand the public housing stock and make better use of municipal property.

Sa Penya rehabilitation continues

The proposed €1.8 million investment comes as the municipality continues work on the rehabilitation of public properties in Sa Penya.

The historic setting places specific requirements on the treatment of the buildings, with the current anteproject designed to preserve protected elements of the existing complex.

The next stage is the completion of the basic and executive project before the rehabilitation can move forward.

€4.7 million proposal at a glance

€2.9 million
Acquisition of homes or residential buildings for the municipal public housing stock.

€1.8 million
Comprehensive rehabilitation of municipal buildings in UA 2-3, Sa Penya.

Five homes
Protected public housing units included in the current Sa Penya anteproject.

Funding
Treasury surplus/remnant, under the exceptional housing investment provisions of Royal Decree-Law 13/2026.

Next step
Initial approval by Ibiza Town Council's plenary session on September 24, 2026.

A new step in Ibiza's public housing plans

The proposal would give Ibiza Town Council another €4.7 million in resources for housing-related investment, divided between acquiring existing properties and rehabilitating municipal buildings in Sa Penya.

For now, the proposal remains subject to the municipal approval process.

If the budget modification moves forward, the next stages will involve the acquisition process for suitable properties and continued development of the rehabilitation project for the five protected homes in UA 2-3.