Innovative solution for housing: Mallorca leads the way

Mallorca is pioneering a groundbreaking solution to its long-standing housing shortage by converting old hotels into social housing. According to a recent agreement between the Mallorca Hoteliers Federation and the Forum for Civil Society, set to be signed by the end of January, low-category buildings in mature tourist areas such as Magaluf and Cala Millor will be transformed into affordable homes for locals.

This initiative is funded by the European Union’s Recovery and Resilience Fund, with an initial budget of 16 million euros. The aim is to reduce tourist pressure in certain areas and provide affordable housing in a market characterized by high prices.

The conversion of hotels into social housing is not a new idea in Mallorca, but this particular initiative represents a significant development. The Balearic Islands government, in collaboration with the hotel industry, is seeking to find a balance between tourism, which is a key pillar of the island’s economy, and the needs of residents for affordable housing.

Sustainable Development

This initiative is expected to have a positive impact in several areas:

• Reducing tourist pressure in specific areas: Converting old hotels into homes will help reduce the number of tourists in areas that already have high tourist activity.
• Increasing the supply of affordable housing: Creating new social housing will help address the problem of a shortage of affordable housing in Mallorca.
• Revitalizing local communities: The presence of more residents in tourist areas will help revitalize local communities and develop new business activities.

However, the success of this initiative depends on several factors:

• Effective cooperation between the government, hoteliers, and local communities.
• The definition of clear criteria for selecting hotels to be converted into housing.
• The provision of adequate resources for the implementation of the project.

The conversion of old hotels into social housing is an interesting experiment that is being closely watched by many other European countries facing similar problems. It could serve as an example for other regions trying to find a balance between tourism and the needs of residents.