The Balearic Government buys 88 homes in Palma for €25.8M from Metrovacesa

The Balearic Government buys 88 homes in Palma for €25.8M from Metrovacesa

The Consell de Govern has authorised the Balearic Housing Institute (Ibavi) to process an expense file for an amount of 25.8 million euros in order to exercise the right of first preference on a building owned by the developer Metrovacesa and comprising 88 free dwellings not classified as public housing (VPP), a commercial premises, 93 car parks and 88 free storage rooms not linked to the dwellings, located in Palma.

This operation is part of the exercise of the right of first preference in the transfer of properties between large holders, regulated in Law 5/2018, of 19 June, on housing in the Balearic Islands.

On 30 March, Metrovacesa notified Ibavi of its intention to transfer this building to another large holder. The Government of the Balearic Islands, and more specifically Ibavi, has assessed the advisability of exercising the right of first refusal, considering in essence that the economic-financial crisis and its consequences, of particular relevance to the housing sector, have generated a significant increase in demand for housing as a manifestation of the difficulties of a significant number of citizens to access decent housing.

To date, Ibavi has incorporated 106 homes into the Balearic public housing stock as a result of the right of first refusal in operations between large holders and between individuals who put their public housing for sale: 53 from large holders and 53 from operations between individuals, with an investment of 13.3 million euros, to which these 88 homes will now be added.

This is one of the main lines of work behind the 74% growth of the public housing stock in the Balearic Islands since 2019, with 438 VPPs delivered through 23 developments; 407, under construction; 16 acquired by temporary expropriation from large holders; 60, in tender; 39, the result of public-private agreements; 77, in project drafting, and 156 VPPs, in the budget phase and signing of protocols and agreements.

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