SPAIN’S Council of Ministers has rubber-stamped a government plan worth €7 billion to combat a lack of housing in the country.
The initiative triples government investment in public housing over the next four years.
It guarantees that subsidised housing cannot be reclassified after a few years and also brings aid to younger renters and home buyers.
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Housing Minister, Isabel Rodriguez said: “The public is demanding an agreement to address the main problem currently affecting them.”
Increasing rents and housing costs have been a growing problem in Spain’s property market over recent years with a rising population and tourist housing in cities regarded as key factors.
About 40% of the €7 billion will be earmarked for growing the public housing supply, which Spain lacks compared to the European average, while 30% will be set aside for property renovations.
That will include funds for making homes more energy-efficient and building in depopulated parts of the country.
The rest will go toward subsidies, with a focus on young people.
“It is a significant step forward. For the first time in decades, there is a serious budgetary commitment,” said Raluca Budian, associate director of the Observatory for Decent Housing.
Housing costs in Spain rose nearly 13% year-on-year at the end of 2025, according to the EU statistics agency Eurostat.
Spain ranks near the bottom of Organisation for Economic Co-operation and Development countries with public housing for rent, with under 2% of available supply.
The OECD average is 7%. In France, it is 14%, Britain 16% and the Netherlands 34%.
In the past, Spain built housing with public funds that later passed into private ownership.
Once they were sold, they disappeared from the public housing stock.
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