Spain Plans 532 Affordable Rental Homes on Ibiza With Leases of Up to 75 Years
Spain's housing ministry will build 532 affordable rental homes at Ca n'Escandell on Ibiza, with leases of up to 75 years and 131 million euros in the first phase.
Spain's Ministry of Housing and Urban Agenda announced on 17 September 2026 that 532 affordable rental homes will be built at Ca n'Escandell in Eivissa, on Ibiza, with leases running up to 75 years. The first phase covers 362 units on two parcels the ministry owns outright and carries an investment of 131 million euros. A further 14 million euros or so is pledged for the remaining 170 units, on land where the ministry's share is 60%.
What is committed, and what is not
The 362 units of the first phase are designed by Stefano Boeri Architetti. CASA 47, the state housing entity, will manage more than 400 of the homes in the new neighbourhood directly, which means the state stays the landlord rather than selling into the market. Urbanisation works are due to finish before March 2027, weather permitting, and building is to start in 2027.
The release stops there. It gives no completion date for the homes themselves, no rent level and no allocation criteria. Minister Isabel Rodríguez framed the project alongside a second point: that building affordable housing has to be paired with rules that curb speculation and residential pressure, rather than standing on its own. Read plainly, that is an admission that 532 homes will not, by themselves, move the price level of an island.
The price level the project lands in
Glopra's Balearic Islands row prices the region at USD 6,486 per square metre with asking rent of USD 23.18 per square metre a month, both for the end of August 2026. Spain nationally sits at USD 3,390 per square metre and USD 17.50 per square metre a month. The islands are therefore 1.91 times the national price level.
The yields move the other way, as they usually do when a price level runs ahead of rents. The Balearics return a gross 4.29% and 3.47% after the 19% effective tax on rental income. Spain as a whole returns 6.19% gross and 5.02% net. An island square metre costs nearly twice the national figure and produces roughly seven tenths of the national yield.
What our own data does not carry here
The Balearic row holds a price and a rent, but no annual change series and no bubble-risk score. Those fields are empty for the region and we do not fill them from the national row, because a regional average is not a national average and substituting one for the other would invent a measurement. What both rows do carry is the cost of getting in and out: transaction costs of 15.3% of the purchase price, among the heavier loads in our coverage, and the same 19% effective tax on rental income.
For context on the direction of travel, the national row is up 12.8% over twelve months, 46.8% over five years and 85.5% over ten, with a bubble-risk score of 61 in the elevated band. Those are Spanish figures, not Balearic ones, and the gap between a national index and an island of Ibiza's price level is exactly the sort of gap that a 532-home programme is trying to reach across.
The arithmetic of scale
The ministry did not publish an estimate of how many households on the islands are waiting, so the only honest reading of 532 is the number itself, set against a first construction start in 2027 and a price level 1.91 times the national one. The 75-year lease term is the more structural part of the announcement: it keeps the units out of the resale market for the better part of a century, which is a different instrument from a subsidy that lands once and is then capitalised into the next sale price.
Sources: Ministerio de Vivienda y Agenda Urbana, press release on the Ca n'Escandell development in Eivissa, 17 September 2026 https://www.mivau.gob.es/el-ministerio/sala-de-prensa/noticias/jue-17092026-1700