SPAIN’S new sovereign wealth fund will help to pay for the building of up to 15,000 affordable rental homes per annum.
Prime Minister, Pedro Sanchez, made the pledge on Monday during the fund’s official launch.
España Crece(Spain Grows) aims to create a pot of up to €120 billion in public and private funds.
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Of that amount, €23 billion will be allocated to constructing new rental properties.
Pedro Sanchez said:”We want to roll out the red carpet for private investors to build housing.”
“This is our commitment: the largest volume of public and private financing under favourable conditions,” he added.
Sanchez was accompanied by most of his ministers at the launch event held at the Madrid College of Architects.
Housing will be one of the main pillars of the fund, alongside business competitiveness, energy transition and digitalization.
The government also aims to reuse EU recovery funds before they expire in 2026 and boost investment amid a budgetary stalemate.
Housing costs remain a major concern for people in Spain and a January 2026 poll by the CIS public opinion institute saw 42.6% of respondents listing housing as the country’s top problem.
Data from Eurostat shows house prices in Spain rose 12.8% year-on-year in the third quarter of 2025 — among the biggest hikes in the European Union and well above the zone’s average annual increase of 5.5%.
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He wants to roll out the red carpet for private investors, yet he imposes high taxes, excessive renters’ rights that are excessive, bureaucracy, fees, etc., to deter the private investor..