Basque government buys 500 homes to prevent market sale
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The Basque Government in Spain will purchase over 500 homes in Donostia from Blackstone for approximately 100 million euros.
The government intends to keep these homes as social housing, preventing them from entering the open market. These homes, built under regulations before 2003, were set to lose their protected status in 2028, potentially leading to rent increases and displacement of around 1,700 residents in the Benta Berri development.
Blackstone acquired the properties through its subsidiary, Testa Homes, after previous ownership by Metrovacesa, Vallehermoso, and Merlin. The purchase represents 15% of the Basque region’s total 2026 housing budget and follows a smaller purchase of 100 homes from Kutxabank earlier this year. The government also plans to change laws to prevent homes built before 2003 from losing protected status after 30 years in areas with high housing demand, potentially saving around 55,000 properties.
Blackstone held the right to use the land, but not ownership of the land itself, as the land remains publicly owned.
