Spain’s PM Announces USD25B Housing Fund
The fund, dubbed "Espana Crece" (translating to Spain grows), targets mobilization of €23 billion ($25 billion) for residential development projects, Sanchez revealed. Public financing will contribute €14 billion ($16.7 billion), while private sector investors are expected to supply another €9 billion ($10.7 billion).
Sanchez declared: "We have to build more housing, more public and affordable housing, and lack of financing cannot be another obstacle," He emphasized: "We will roll out the red carpet for private investors, but not to speculate with a constitutional right -- rather to build homes for citizens who struggle to access housing."
Officials plan to inject €10.5 billion ($12.3 billion) from untapped European Union post-pandemic recovery loans into the initial fund, supplemented by €2.8 billion ($3.4 billion) in grant allocations. Authorities project the capital pool could swell to €120 billion total through debt mechanisms and private capital infusion.
Housing represents a primary focus area for the fund, alongside business competitiveness, energy transition initiatives, and digital transformation. The administration additionally seeks to deploy EU recovery resources before their 2026 expiration while stimulating investment during ongoing budget negotiations.
The initiative arrives as residential affordability dominates Spanish public anxiety. A January 2026 survey by the CIS public opinion institute found 42.6% of respondents identified housing access as the nation's foremost challenge—a three-point surge from the prior month.
Eurostat figures reveal Spanish property prices jumped 12.8% year-over-year in 2025's third quarter—ranking among the European Union's steepest increases and substantially exceeding the bloc's 5.5% annual average growth.
Opposition factions have condemned the program, contending it functions less as a sovereign wealth mechanism than an enlarged state lending operation. The conservative Popular Party has charged the government with deploying the fund to mask inadequate EU fund administration and salvage unused recovery financing.
Government officials counter that the instrument will maintain investment activity following the European recovery program's conclusion later this year.
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