Affordable Housing Programme in Ibiza Offers Homes at Reduced Prices
Residents of Ibiza and Formentera have a new opportunity to find affordable housing. The government’s Secure Rental Programme is making 2,000 homes available at prices up to 30% below market rates.
Government Initiative Aims to Ease Housing Crisis
The Balearic Government has launched an Affordable Housing Programme in Ibiza, offering rental homes at maximum prices of €1,470. This initiative provides young people and families with medium incomes access to affordable housing.
How the Programme Works
Under this programme, the government pays property owners a rental price assessed by estate agents or property administrators. The maximum prices for landlords are €2,100 in Ibiza and Formentera.
“We want to break the barrier for many owners who prefer to keep their properties empty due to fears of non-payment or damage,” said President Marga Prohens.
Benefits for Property Owners
- Guaranteed Rental Payments: Owners receive secure payments from the government.
- Property Maintenance: The government returns homes in the same condition after the rental period.
- Tax Incentives: Owners can deduct 70% in their income tax declarations.
- Flexible Payment Options: Owners can choose how they receive payments.
Eligibility Criteria for Tenants
Tenants must be residents of the Balearic Islands for at least five years and have maximum incomes of 6.5 times the IPREM, which equates to €60,667 annually for one tenant or €68,250 for two.
Requirements for Properties
- Must not be new builds and must be at least three years old.
- Vacant for at least six months or without anyone registered for one year.
- In good condition with water and electricity supplies.
Role of Estate Agents and Administrators
The College of Property Agents (Coapi) and the College of Property Administrators (Cafbal) are collaborating entities. They will:
- Source Eligible Properties: Identify homes suitable for the programme.
- Assess Potential Tenants: Ensure tenants meet income and residency requirements.
- Determine Rental Prices: Provide valuation reports for property rentals.
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Potential Impact on the Rental Market
Antoni Jaume, President of Cafbal, believes that if successful, the Affordable Housing Programme in Ibiza could stabilise rental prices. The initiative aims to attract properties currently used for holiday rentals back into the residential market.
How to Participate
Interested property owners and tenants should contact Coapi or Cafbal. Each operation has a fixed fee of €1,500.
Conclusion
The government’s Affordable Housing Programme presents a win-win situation for both property owners and tenants. By providing security and incentives, it encourages owners to rent out their vacant properties, helping alleviate the housing shortage in Ibiza and Formentera.
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