The governing body in the Adeje City Council will suggest to the upcoming municipal assembly to start the necessary procedures to designate the town as a ‘stressed market area’, leveraging Law 12/2023, dated May 24, pertaining to the right to housing approved by the Government of Spain.
The process to enact this designation involves, primarily, the approval of a motion by the entire city council urging the Government of the Canary Islands to conduct the required studies to assess the socio-economic indicators that would permit the designation of a stressed area.
Hence, the objective is to ascertain, using official statistical data, whether, as presumed in Adeje, its residents allocate a minimum of 30% of their income towards housing costs or if the property purchase or rental prices have surged by more than 3 percentage points above the CPI in the preceding five years, with the potential to conduct this analysis by specific areas or population centres within the town itself.
The mayor, José Miguel Rodríguez Fraga, has admitted that they are “conscious” of a “critical issue” concerning housing accessibility for many individuals and employees, and efforts must be made “to address it.”
The mayor acknowledged that there are no universal solutions and that they will all require time to contribute to resolving the issue.
“This is why we are incorporating this initial step of requesting the designation of a stressed area within a more comprehensive and ambitious strategy that we are formulating and will unveil shortly,” he stated in a release.
This strategy will encompass the construction of more residences, maximising land availability, and forming partnerships with other governmental bodies and organisations involved in constructing homes for the working population.
This initiative introduces the possibility that, in a stressed area, “tenants can lower their rental payments by 5% in exchange for tax breaks that could reach up to 90%, with a deduction of 70% for rentals to young individuals aged between 18 and 35, or if the property has undergone renovations or enhancements, the discount will be 60%,” as outlined in the motion to be presented at the assembly.
Furthermore, landlords who enter a ten-year agreement can avoid the rental price freeze and may elevate the rent by a maximum of 10% in return for extending the contract duration.
45 Residences in Armeñime
Adeje has already outlined plans, by ceding land to the Government of the Canary Islands, to construct 45 residences in the Armeñime vicinity and is poised to allocate additional land to amplify this figure.
Over the past thirty years, it has executed housing schemes resulting in the introduction of over 1,000 homes for the working population.
“It is a route we have already trodden and can navigate again because we are familiar with it and, foremost, along with this initiative that we are set to endorse, is to designate land enabling the execution of such projects,” the mayor expressed.
By designating a stressed area, Adeje aims to assist in curbing rental prices, furnish support for individuals listing their properties on the market, and provide tax incentives and other measures that impact and help reduce prices in the subsequent months, averting excessive increments each time a lease has to be renewed.
The town undertakes the challenge of being among the pioneers in implementing these measures, recognising the uncertainties involved in their implementation but certain that any effort must contribute to resolving a concern that is escalating day by day.
