Spain will subsidize affordable housing construction
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The Spanish government plans to provide 200 million euros to private sector companies to build 2,425 affordable rental homes through Casa 47, a new state housing company.
The government will contribute land and direct financial aid of roughly 83,000 euros per new unit. Officials justify the subsidies by explaining that limiting rental prices reduces potential profits for companies, making investment less attractive without assistance.
The new regulations, formalized through a royal decree, aim to address a shortage of affordable housing and make it easier for people to access homes. Casa 47 expects to offer 1,500 more affordable units before the end of the year, adding to the 800 already available, mostly acquired from Sareb, a state-owned bad bank. Over the next decade, Casa 47 anticipates having 100,000 affordable homes, including new construction like a planned 10,000-unit development in the Campamento neighborhood of Madrid.
The government will own the properties for 50 years before transferring them back to the state, and will limit monthly rent to no more than 30% of the median income for households, as calculated by the National Statistics Institute. Maribel Ramos recently became president of Casa 47, replacing Leire Díaz.
