Parón a Las Rehoyas: el Ayuntamiento de Las Palmas de Gran Canaria suspende la construcción de los pisos de Doctor Chiscano

The article, authored by journalist Javier Darriba for the Canary Islands daily Canarias7, reports the suspension of the construction of a 152‑unit residential block on Doctor Chiscano street in the Las Rehoyas neighbourhood of Las Palmas de Gran Canaria. The development is part of the city’s large‑scale urban renewal programme aimed at replacing outdated public housing and improving living conditions for over 2,500 families across the archipelago. The suspension highlights challenges faced by European municipalities when cost overruns, regulatory changes and technical difficulties intersect with sustainable housing ambitions.

The original contract, awarded to Construplan Construcciones y Planificación in October 2022, envisaged completion of the Doctor Chiscano block by June 2025, with a budget of €14.04 million. By mid‑2026 less than 20 % of the works had been executed, and a revised cost estimate rose to €15.44 million. A further modification proposed an additional €6.99 million—a 49.79 % increase over the initial contract value—approaching the 50 % threshold that legally permits contract termination. Under the new construction regulations, any modification exceeding 20 % loses mandatory status, leaving the contractor free to decline, which Construplan did.

• March 2023: Construction commenced.
• June 2023: First design modification required due to drainage issues and a needed relocation of a transformer station.
• April 2024: Extension granted until 31 December 2025 for completing four blocks (one eight‑storey and three six‑storey).
• June 2025: Council halted the execution deadline after stricter building codes were introduced, allowing only temporary anchorage replacements for safety.
• November 2025: Revised schedule pushed final completion to 2028, with costs now at €15.44 million.
• March 2026: Council resolved to terminate the contract, citing the 49.79 % cost increase.

The municipal council, represented by Development Urban and Housing councillor Mauricio Roque, formally initiated the contract resolution process on 23 March 2026. The resolution also warned Construplan that refusing the modification would forfeit its right to claim a 3 % indemnity on the unperformed work. The council highlighted potential further price pressures from external factors, notably the impact of the Iran conflict on construction material inflation.

The Las Rehoyas renewal scheme is the largest housing replacement programme in the Canary Islands, intended to transform a dense, car‑dependent area into a mixed‑use neighbourhood with ample green spaces and community facilities. The suspension of the Doctor Chiscano block delays the creation of 152 sustainable homes and underscores the importance of robust cost‑control mechanisms, adaptable regulatory frameworks, and resilient supply chains in delivering eco‑friendly urban housing across Europe.

The case exemplifies the fragility of large‑scale public‑housing projects when faced with unforeseen technical challenges and escalating costs. It also reflects a broader European trend where municipalities must balance ambitious sustainability goals with fiscal responsibility and regulatory compliance. The council’s next steps may involve re‑tendering the works under the updated construction standards, potentially attracting contractors with stronger capacities to manage cost volatility and deliver energy‑efficient, socially inclusive housing.