Viability Strategies for Housing Projects in the Balearic Islands
Introduction: Housing in the Balearic Islands, between speculation and exclusion
Over the past decades, access to housing in the Balearic Islands has shifted from being a right to becoming a scarce commodity. A tourism-dependent economy, the conversion of housing into tourist rentals, a boom in foreign property investment, and a shortage of available land have all triggered an unprecedented housing crisis.
While rental and purchase prices continue to rise, more and more residents face housing exclusion — some are even forced out of their communities, crammed into overcrowded flats, moved far from their workplaces, or even off the islands entirely.
This has given rise to a new profile of housing exclusion: working people, many of them qualified professionals, who are unable to access adequate housing because their income doesn’t cover the cost pressures of the real estate market. Although the Balearic Housing Law 5/2018 and the national Housing Law 12/2023 have introduced some measures, their implementation has been insufficient to address the scale of the problem.
In this context, the Espais de Vida initiative aims to develop innovative and sustainable solutions for housing access in the Balearic Islands, inspired by efforts such as the Edith Maryon Foundation in Switzerland.
Below are various strategies that could be implemented to ensure the project’s viability and social impact.
Viability Models
1. Housing Bank Managed by the Foundation (Trusted Third Party)
CONCEPT:
Create a platform where property owners can access verified information on prospective tenants or delegate management of their properties to a nonprofit foundation that rents them out to employees of companies and institutions.
MECHANISM:
The foundation acts as a trusted intermediary between property owners and prospective tenants, including companies and families.
Guaranteed stable and fair rental income for landlords.
Businesses, especially in the tourism sector, can access this rental service to house employees.
A housing database is created and optimized for seasonal workers, civil servants, and residents seeking affordable housing.
The foundation’s social workers vet tenant profiles, ensuring landlords receive stable, responsible tenants and reducing risks like subletting for profit..
ADVANTAGES:
– Reduces risk for property owners by relying on a trustworthy entity.
– Ensures fair rental prices, eliminating abusive intermediaries.
– Generates income for the foundation through a management fee.
2. Creating New Housing Through Public Agreements
CONCEPT:
Establish agreements with the Balearic government, island councils, and local authorities to use public land for developing cooperative housing or co-housing under use-right models.
MECHANISM:
Identify available public land and negotiate with authorities.
Develop collaborative housing projects under use-right schemes.
Partner with ethical developers and social finance institutions to reduce costs
ADVANTAGES:
– Provides affordable housing without large upfront investment from the foundation
– Replicable and scalable model across multiple municipalities
– Encourages community participation in space management
3. Receiving Homes as Donations with Lifetime Usufruct or Bare Ownership
CONCEPT:
Encourage elderly property owners to donate their homes to the foundation while retaining the right to live there until they pass away.
MECHANISM:
Sign contracts for bare ownership or lifetime usufruct.
After the donor’s death, the foundation rents the property at affordable rates.
Offer tax incentives to donors, encouraging such social legacies.
ADVANTAGES:
– Expands the foundation’s housing stock without buying property.
– Provides peace of mind to elderly donors who lack heirs or wish to create social impact.
– Creates sustainable revenue streams for the foundation.
4. Converting Underused Spaces into Affordable Housing
CONCEPT:
Repurpose vacant or underutilized buildings (unfinished developments, old hotels, administrative buildings, closed schools, factories, etc.) into housing solutions.
OUR PROCESS:
Collaborate with local governments to identify unused public buildings.
Reach agreements with private owners to convert empty properties.
Use sustainable renovation techniques to reduce energy costs and improve efficiency.
Combine housing with coworking, education, or community spaces when appropriate.
ADVANTAGES:
– Quick turnaround for housing solutions without new construction.
– Revitalizes abandoned buildings with positive social and economic effects.
– Supports flexible housing models (shared flats, modular studios, seasonal worker units)..
EXAMPLE:
In Barcelona, unused hotels have been converted into affordable housing in response to the housing crisis.
5. Cooperative Housing on Leased Land (Use Rights)
CONCEPT:
Promote housing cooperatives on publicly leased land where residents are users rather than owners, reducing resale-driven price inflation.
MECHANISM:
The foundation obtains land use rights from public entities (for 75–99 years)
A housing cooperative is formed and granted these rights
Residents pay affordable fees and manage the property collectively
Projects can include intergenerational or cohousing models
Access to ethical financing and public subsidies is encouraged.
ADVANTAGES:
– Long-term and sustainable model, preserving public land.
– Accessible option for young people, families, and the elderly.
– Encourages self-management and stable communities..
EXAMPLE:
The La Dinamo Foundation in Catalonia has successfully launched several use-right cooperative housing projects.
6. Temporary Housing for Essential Workers
CONCEPT:
Create a regulated rental system for essential workers (healthcare staff, teachers, emergency workers) with time-limited leases.
MECHANISM:
Partner with public and private employers to co-fund housing.
Use foundation-owned or rented properties for regulated rentals.
Activate seasonal housing during the off-season.
ADVANTAGES:
– Eases the housing crisis for vital public sector workers.
– Helps retain talent in strategic sectors.
– Reduces pressure on the seasonal rental market.
EXAMPLE:
Similar models in Switzerland and Germany offer affordable housing to essential workers.
7. Intergenerational Housing Pool
CONCEPT:
Connect elderly people living alone with younger people or workers in need of housing, facilitating room rentals in existing homes.
MECHANISM:
The foundation manages a platform matching hosts and tenants.
Rental contracts ensure fair prices and regulated living conditions.
Social workers provide support to ensure safe and respectful coexistence.
ADVANTAGES:
– Fights loneliness among the elderly.
– Reduces rental market pressure.
– Cost-effective solution with high social impact..
EXAMPLE:
The “Convive” program in Madrid has successfully connected students with senior citizens.
8. Crowdfunding Platform for Social Housing Projects
CONCEPT:
Create a digital platform that allows citizens and ethical investors to finance social housing projects through donations, microloans, or equity investments.
MECHANISM:
Launch housing projects with investment options for all types of contributors.
Allow individuals to donate or join impact investment funds.
Ensure full transparency on where funds go and their social return.
ADVANTAGES:
– Channels private investment into social projects.
– Encourages public participation in housing solutions.
– Diversifies funding beyond public subsidies..
EXAMPLE:
Ethical Property (UK) has mobilized millions to develop affordable work and living spaces.
Conclusion: Diversifying Models to Maximize Impact and Sustainability
Access to housing in the Balearics is a complex challenge that requires innovative solutions and management models combining public-private cooperation with strong social focus.
Espais de Vida has the opportunity to become a key player in transforming access to housing by prioritizing its social function. To do so, it is essential to diversify strategies:
– Use a foundation-managed housing bank.
– Develop new homes on public land through cooperative use-right models.
– Receive donated homes with lifetime usufruct.
Beyond these core strategies, complementary approaches can enhance impact:
– Repurpose underused buildings for quick housing solutions.
– Provide temporary housing for essential workers.
– Promote intergenerational housing programs.
– Launch crowdfunding platforms to attract ethical investment.
Success will depend on building strategic alliances, an efficient operational structure, and securing the necessary resources to make Espais de Vida a tangible and lasting reality in the Balearic Islands.
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