Spain's Industrial Revolution in Social Housing: A Billion-Euro Boost

Spain plans to invest €1.3 billion of EU funds in industrial projects for social housing over the next decade. This initiative aims to alleviate a shortage of 600,000 homes and offer 15,000 new dwellings annually. The effort also includes rent controls and limited short-term rentals.

Spain has unveiled a bold plan to invest €1.3 billion of EU funds over the next decade in industrial projects aimed at expanding social housing. Prime Minister Pedro Sanchez announced on Thursday that the initiative will deliver approximately 15,000 new homes annually, significantly addressing a deficit of 600,000 homes.

Currently, only about 5% of Spain's housing is constructed using industrial methods compared to 20% in Germany, a strategy that involves prefabricating a significant portion of buildings in factories before assembling them on-site. This initiative is part of a broader strategy to increase affordable housing availability amid skyrocketing rents and property prices, which have plunged many Spanish cities into a housing crisis.

In tandem with building more homes, the Socialist government is implementing rent controls in major cities and restricting short-term tourist rentals. They aim to increase the availability of social housing, currently just 3% of the housing market, far below the European average of 9%. Sanchez mentioned Valencia, previously devastated by severe floods, as the starting point for these industrial projects.

(With inputs from agencies.)