Spain’s Ministry of Housing and Urban Agenda has begun processing €90 million in direct grants for the autonomous regions that have declared stressed residential market areas, covering 317 municipalities across Catalonia, the Basque Country, Navarre, Galicia and Asturias.
The funding has yet to be approved or transferred. On 2 September, the ministry, led by Isabel Rodríguez, opened the draft royal decree governing the grants to public consultation, a step ahead of its submission to the Council of Ministers. The amounts announced therefore remain provisional until the process is completed and the legislation receives government approval.
Catalonia is set to receive almost two-thirds of the funding, with a proposed allocation of €59.7 million. The Basque Country follows with €15.5 million, ahead of Navarre with €6.6 million, Galicia with €5.1 million and Asturias with €2.9 million.
The regional governments will be required to use the funding for measures included in specific plans designed to address imbalances in the residential markets of the areas concerned. Eligible initiatives include the development and construction of public housing, the refurbishment of properties for affordable rental and the acquisition of homes to be incorporated into public housing stock.
The funds may also be used to acquire land owned by municipalities or private parties for residential development, as well as for land servicing and preparation. The programme therefore extends beyond direct construction, allowing funding to cover different stages in the creation of affordable housing supply.
The grants are linked to the implementation of Spain’s Housing Law and will be awarded directly to the five autonomous regions that have activated the stressed-market zones provided for under Law 12/2023 on the right to housing.
The designation of a stressed residential market area must be requested at regional level and requires the preparation of a plan of measures aimed at addressing the factors limiting access to adequate housing in each area. Once designated, the areas allow restrictions to be applied to rents for certain tenancy agreements, including those involving large landlords and properties that have not been rented during the previous five years, as well as extraordinary lease extensions in the cases provided for by law.
The 317 municipalities covered by the programme are spread across the five beneficiary regions. The ministry has not yet specified how much funding will be allocated to each municipality or which individual projects will receive support. These details will depend on the programmes submitted by the regional authorities and the subsequent implementation of the grants.
Isabel Rodríguez said the funding would help expand public housing stock through new construction, refurbishment and the acquisition of properties or land, while linking the initiative to the implementation of the tools established under the Housing Law.
