Can Fontet: The new neighborhood that Palma needs
The plan foresees the construction of more than 4,000 rental homes, 50% of which will be below market price, making them accessible to a wide range of residents.
After more than 15 years of stagnation, a 41-hectare area of development land on the outskirts of Palma could become something extraordinary if the proposal currently under development goes ahead. It is not simply a real estate development, but a regenerative, community and sustainable initiative that aims to redefine how our cities develop.
At a time when Mallorca —and many other regions of Spain— is facing a serious crisis in access to housing, with exorbitant prices, infrastructure at its limit and climate pressure, the Can Fontet project is proposed as a replicable model to build a fairer, more resilient and inclusive urban future.
The proposal seeks to recover and activate a land that has been idle for years through a public-private collaboration between the Compensation Board and the City Council. This is a strategic area not only due to its location, but also due to its territorial history. For this reason, the project will try to preserve some existing uses and will be particularly sensitive to the agricultural memory of the Palma orchard, integrating landscape, productive and cultural elements that reinforce the local identity. In addition, a mixed financing structure is being configured, with the expected support of the Official Credit Institute (ICO) and the interest of European financial institutions such as the European Investment Bank. The objective is to demonstrate that accessibility and social impact can coexist with sustainable economic profitability in the long term.
Driven by the Placemaking Investment Fund (PIF), a new impact investment platform, Can Fontet does not limit itself to building homes: it wants to rebuild trust between citizens, public institutions and capital. The plan foresees the construction of more than 4,000 rental homes, of which 50% would be below market price, making them accessible to a wide variety of residents. But just as important as the homes are the schools, squares, parks, bike paths and social infrastructures, which have been an integral part of the urban design from the beginning. The developer fund, defined as a long-term investor, applies a “build to rent” model, which seeks to ensure that both the development and future management of the neighborhood prioritize social and environmental impact.
Just as important as the homes are the schools, squares, parks, bike lanes and social infrastructures, which have been an integral part of urban design from the beginning.
Can Fontet also aims to be a benchmark in sustainability, with buildings designed to consume at least 20% less primary energy than the national standard for nearly zero-energy buildings. It will include sustainable drainage systems, green corridors and solar roofs, designed to promote climate resilience. This ecological base aligns with the lines of action of the main European green investment institutions.
One of the most distinctive aspects of the project is its focus on public space. In collaboration with the Peris+Toral architecture studio, specialized in social housing, Can Fontet places placemaking at the center of urban transformation. The streets will be designed for coexistence and on a human scale. Public space will not be an addition, but the main infrastructure of community life.
Can Fontet also represents an innovative proposal in terms of governance. Instead of waiting for the arrival of conventional capital, the fund has designed a flexible and long-term structure, capable of adapting to public needs and the real pace of development. The joint work with the local government and the initial commitment of the ICO exemplify how catalytic capital can reduce risks and unlock large-scale urban transformations.
In this context, the Placemaking Investment Fund has presented a formal proposal to acquire the land, adjusted to market values and with the intention of generating shared benefits. It is currently awaiting a response from the Compensation Board, a key body to activate the development of the area. The initiative is in an advanced phase of structuring. The acquisition of the land is scheduled for October 2025, and the developers intend to start the citizen participation processes in 2026, once the urban planning authorizations have been obtained. Open meetings, workshops and working groups will be convened with the neighborhood, social entities and public agents, with the aim of co-designing a neighborhood designed for people.
In a context of tourist pressure and housing crisis, Can Fontet can become a prototype for the Balearic Islands, for Spain and for Europe: a new way of conceiving urban growth not as a transaction, but as a collective act of renewal.
Can Fontet is not presented as a closed solution, but as an open and ambitious proposal, which requires institutional commitment, citizen participation and public-private collaboration to become a reality. It is a concrete opportunity to demonstrate that it is possible to build a city in a different way, where accessibility, sustainability and collective well-being are not an exception, but the norm. Palma —like so many other cities— needs to imagine new paths to grow with equity. Can Fontet offers a roadmap, but its success will depend on the shared will to turn this vision into a common project.