Finance
Spain's Sanchez seeks support from regions to triple housing budget
Published by Global Banking & Finance Review®
Posted on June 4, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 4, 2025
2 min readLast updated: January 23, 2026
Spain's PM Sanchez seeks regional support to triple the housing budget to 7 billion euros, aiming to increase social housing and address the deficit.
MADRID (Reuters) -Prime Minister Pedro Sanchez on Wednesday sent a letter to leaders of Spain's regions seeking support to triple investment in social housing to around 7 billion euros ($8.00 billion) over the next four years.
Spain needs to increase its social housing stock, currently equivalent to around 3% of all homes, to bring it closer to the European average of 8% in order to alleviate a shortage as buying and renting prices reach record highs.
Ahead of a meeting on Friday between Prime Minister Pedro Sanchez and regional leaders, he offered to invest 4 billion euros, up from the current 1.7 billion allocated over the last three years, to build more homes and plug a housing deficit estimated at 450,000 by the Bank of Spain.
Regional governments, which are mostly controlled by the conservative People's Party (PP), would provide the remaining 2.7 billion euros.
That would mean Spain's regions have to agree to increasing their contribution to the housing budget to 40% from the current 25%. The government also wants regions to commit to maintaining social housing under state ownership and prohibiting their sale, government sources said.
In the past, Spain built thousands of homes with public funds that later passed into private ownership.
Government sources did not provide details about how the increase in housing budget would be funded or whether it would need parliamentary approval.
Sanchez's minority coalition government is trying to pass new taxes in Congress to discourage owners from renting homes to tourists and foreigners from buying.
The government will also propose creating a new database from all national and regional registers, with the aim of better monitoring rental and housing prices, as well as tourist rentals and available land to build on, the sources said.
($1 = 0.8754 euros)
(Reporting by Corina Pons; editing by Charlie Devereux and Ed Osmond)
Prime Minister Pedro Sanchez proposed to triple the investment in social housing to around 7 billion euros, increasing it from the current 1.7 billion allocated over the last three years.
Spain's social housing stock is currently around 3% of all homes, which is significantly lower than the European average of 8%.
Regional governments need to agree to increase their contribution to the housing budget from 25% to 40%, which amounts to an additional 2.7 billion euros.
The government plans to create a new database from national and regional registers to better monitor rental and housing prices, as well as tourist rentals.
Sanchez's minority coalition government is trying to pass new taxes in Congress to discourage owners from renting homes to tourists and foreigners from buying, which may face opposition.
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