RENTAL contracts for 75 years and below-market rates form part of Spain’s latest solution to the housing crisis, Casa 47.
This new public housing company has been promoted by the government with the aim of combatting skyrocketing rental prices that are creating a housing crisis across the country.
Aiming to offer stability to tens of thousands of tenants, Casa 47 has generated both praise and criticism through its proposal of decade-long housing contracts and exclusion of certain groups.
It replaces Sepes, the historic state land entity, and pays homage to article 47 of the constitution which recognises the right to decent and adequate housing.
Its ambitious offer proposes rental contracts for up to 75 years – contracts will begin with a 14 year period that has automatic extensions for seven years and maintains the majority of access conditions.
Renters will upload their properties through a housing portal, similar to Idealista, that will be operative in 2026 and see interested tenants look through the available options and property requirements.
The portal will also allow them to formalise their applications on the listed homes, which will not be sold in the private sector to prevent speculation.
Through these measures, Casa 47 intends to guarantee that housing stops being a constant worry and becomes an effective right for those who meet the established requirements, according to the minister of housing, Isabel Rodriguez.
The requirements are clear: access to Casa 47 housing will be limited to those whose income is situated between two and seven and a half times the Iprem.
This is equivalent to the annual gross income of between €16,800 and €63,000, a category which approximately 60% of the Spanish population fit into.
Those below this minimum will be assisted through social housing and those that surpass the maximum are required to continue using the open market.
Furthermore, renters will not exceed 30% of the average income in the area where the property is situated – in Madrid prices will be up to 38% lower than those on the open market and in other cities, such as Malaga, they will drop to up to 50% lower.
The government defends that this formula will allow for affordable and accessible rentals without compromising Spain’s economic stability and sustainability.
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It will not be until 2026 that Casa 47 becomes fully operative and the first round of renters has not yet been published.
Despite this delay, the criteria of access and legal mark are already being defended by the Ministerio de Vivienda – a move which lays the groundwork for the initiative’s gradual implementation.
This defence comes amid intense political debate regarding the project’s proposal.
Madrid’s town hall has criticised the initiative for leaving out families with lower incomes and the national opposition has questioned the €16.5 billion price tag for incorporating 40,000 homes and 2,400 plots of land from Sareb into the state perimeter.
The Ministerio de Vivienda is insisting, however, that Casa 47 will be a crucial piece of public policy that will offer long term stability and low market rents with contracts that promise record duration and security for tenants.
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