Tag: social housing

Barcelona City Council Reactivates the Construction of 650 Social Housing Units

Barcelona City Council has assured that by the end of 2020 there will be 2,400 officially protected flats under construction, of which 83% will be for rent.

Over the next few days, Barcelona City Council will reactivate the construction of 15 affordable housing properties, comprising 650 flats, according to an announcement made on Wednesday by the Councillor for Housing, Lucía Martín.

She also revealed that the City Council will tender a package of 16 more projects comprising 1,500 flats in total between now and the end of the year. As such, by 31 December 2020, there will be 2,400 public flats under construction in Barcelona, of which 83% will be for rent. The rest will be used either for urban development or will form part of a surface area entitlement, whereby the city grants public land for use by the residents for 75 years.

Sareb Offers 10,000 Social Housing Properties to Town Halls

The Company for the Management of Assets proceeding from the Bank Restructuring (Sareb) is expanding its social housing offer during the Covid-19 crisis by 6,000 units.

The Company for the Management of Assets proceeding from the Bank Restructuring (Sareb) has launched an offensive to offer a portfolio of 10,000 social housing properties to Town Halls all over Spain. The intention is that they will use them to house families with economic problems resulting from the coronavirus pandemic, according to reports from El Confidencial.

Until now, Sareb had made 4,000 homes available to the administrations, but the crisis generated by Covid-19 has led the entity to focus its efforts on reaching agreements with as many administrations as possible.

Basque Government Invested €50.1 Million in New Social Housing Rental Units

6 January 2020 – The Basque Government acquired a total of 506 flats over the past year for use in public housing. The regional government acquired the properties using public funds, budgetary surpluses and the Sustainable Financial Investments financial instrument used by Spanish local authorities. The properties are now under management by the Basque public company Alokabide.

The government invested a total of 50.1 million euros in the acquisitions. Specifically, the government acquired 70 VPO flats in the neighbourhood of Donostiarra in Morlans (€4.9 million), 32 VPOs in Santurtzi (€4.5 million), an advance on 84 social housing units in Ortuella (€2.4 million), 52 VPOs in Sestao (€7.6 million), 26 VPOs in Mungia and 52 VPOs in Amorebieta (€9.5 million), nine free homes owned by SAREB in several locations (742,000 euros), 36 VPOs in Legutio (€3.8 million), three homes in Bermeo (345,635 euros), 91 social housing units in the neighbourhood of Iturribarri in Getxo (€8.2 million) and 51 VPOs in the neighbourhood of Zerrajera in Arrasate (€7.8 million).

El Gobierno Vasco adquirió un total de 506 pisos durante el año pasado para uso como viviendas públicas. El gobierno regional adquirió las propiedades utilizando fondos públicos, excedentes presupuestarios y el instrumento financiero de inversiones financieras sostenibles utilizado por las autoridades locales españolas. Las propiedades están ahora bajo la gestión de la empresa pública vasca Alokabide.

El gobierno invirtió un total de 50,1 millones de euros en las adquisiciones. Específicamente, el gobierno adquirió 70 pisos VPO en el barrio de Donostiarra en Morlans (€ 4.9 millones), 32 VPO en Santurtzi (€ 4.5 millones), un anticipo de 84 unidades de vivienda social en Ortuella (€ 2.4 millones), 52 VPO en Sestao (7,6 millones de euros), 26 VPO en Mungia y 52 VPO en Amorebieta (9,5 millones de euros), nueve viviendas gratuitas propiedad de SAREB en varias ubicaciones (742.000 euros), 36 VPO en Legutio (3,8 millones de euros), tres viviendas en Bermeo ( 345.635 euros), 91 unidades de vivienda social en el barrio de Iturribarri en Getxo (8,2 millones de euros) y 51 VPO en el barrio de Zerrajera en Arrasate (7,8 millones de euros).

Original Story: La Vanguardia – P. R. D.

Translation/Summary: Richard D. Turner

Catalonia’s Regional Government Boosts Social Housing

4 January 2020 – The Catalonian regional government approved a decree at the end of 2019 that will oblige people and companies which own more than fifteen properties to offer social housing to groups considered vulnerable. Those groups may include families in eviction proceedings and people who have illegally occupied properties for at least six months since the decree’s approval.

The government will also extend compulsory social rental contracts from three to five or seven years, depending on whether a person or a company owns the property. Additionally, the government will implement a measure whereby buildings with unfinished works will be considered unoccupied after a specific period and liable to coercive fines and the possibility of expropriation.

La Generalitat de Cataluña aprobó un decreto a fines de 2019 que obligará a las personas y empresas que poseen más de quince propiedades a ofrecer viviendas sociales a grupos considerados vulnerables. Esos grupos pueden incluir familias en procesos de desalojo y personas que han ocupado propiedades ilegalmente durante al menos seis meses desde la aprobación del decreto.

El gobierno también extenderá los contratos obligatorios de alquiler social de tres a cinco o siete años, dependiendo de si la propriedad es de una persona o una empresa. Además, la Generalitat implementará una medida por la cual los edificios con obras inacabadas se considerarán desocupadas después de un período específico y susceptibles de multas coercitivas y la posibilidad de expropiación.

Original Story: El Confidencial

Translation/Summary: Richard D. Turner

Private Companies Start Building VPO Rental Homes Due to Lack of Public Resources

11 June 2019 – Idealista

Housing and the need for public-private partnerships to build affordable homes was one of the hot topics during the recent election campaigns. But the reality is that the public administrations do not have the resources to fund any substantial residential programs.

In addition, Spain has traditionally been a country of homeowners and so most of the few affordable homes that the state has been building have been sold rather than put up for rent. This represents a major problem for the growing population of renters in the country, which some estimate currently account for 23% of total demand, compared with the European average of 34%. The Bank of Spain’s official figure for 2017 was 16%. Regardless, private companies are entering the market to fill the gap.

One such example is Azora, which has been managing social housing for rent since 2004 through its fund Lazora. It estimates that Spain needs 2.5 million mostly affordable rental homes to bring it in line with the European average. That would require an investment of approximately €300 billion over the next few years, a mammoth figure.

Azora actually sold its Lazora portfolio, containing almost 7,000 homes (private and social) to CBRE and Madison in 2018. They committed to continue investing capital in the sector and have already committed more than €200 million in various projects to build 1,200 more homes.

Azora still manages almost 14,000 social and private rental homes across the country and has recently been joined in the sector by the property developer AQ Acentor, the real estate arm of the German fund Aquila Capital. Specifically, AQ Acentor is planning to build 1,450 VPO rental homes in Villaverde, Barcelona, Valencia and Málaga. The numbers are not huge but they will go some way to plugging the gap.

Meanwhile, in the public sector, according to data from the Ministry of Development, 5,167 VPO homes were built in 2018, of which just 353 (6.8%) were dedicated to rental. In 2017, 4,938 VPO homes were constructed, the lowest absolute number since records began, of which 355 (7.1%) were dedicated to rental. Madrid accounted for most of the new VPO homes in 2018 (2,418, of which just 78 were dedicated to rental).

Azora considers that more institutional investment is required to make up for the housing deficit and that “to attract such capital, we need solutions and policies that promote and facilitate the construction of new rental homes”. It remains to be seen whether the politicians can put their ideological differences aside and come up with a clear and consensual housing policy for the benefit of the country at large.

Original story: Idealista (by P. Martínez-Ameida & Ana P. Alarcos)

Translation/Summary: Carmel Drake

País Vasco is Committed to Social Housing for Rent Not Sale

25 March 2019 – El País

País Vasco is going to stop building public housing for sale. From 2020 onwards, all of the public developments will be for rental, after it was revealed to be the preferred option for 52,000 of the 64,000 applicants registered on the waiting list for social housing properties. The aim is to boost supply whereby avoiding a shortage that could lead to a bubble.

The regional Government’s commitment to the rental sector is huge. According to data from the Government itself, investment in the segment in Euskadi will amount to €1.12 billion between 2018 and 2020, which is €48 million more than the State is planning to allocate to its housing plan for Spain as a whole during the same period (€1.07 billion).

The Basque Government already owns a stock of 13,340 social housing units for rent, and it is currently building 4,600 more.

Another one of the major battles facing the Basque Government is how to get the more than 20,000 empty homes in the region onto the residential market. This year, the Government is set to approve a decree that fixes the fee for empty homes at €10/m2, which the Town Halls will then be able to apply if they so decide.

It has also launched a program of subsidies of up to 60% of the rental payment for young people aged between 23 and 35 who want to leave home.

Original story: El País (by Pedro Gorospe)

Translation/Summary: Carmel Drake

Málaga has 3 Macro-Projects in the Pipeline for 2030

20 March 2019 – Eje Prime

Málaga is giving itself a makeover. It wants to be known as a smart city or the museum city, rather than the tourism hub for the Costa del Sol. To this end, the Town hall of Málaga is managing more than thirty projects to be launched over the next ten years. And the outlook is bright. The city offers high returns both on the high street, as well as in shopping centres and prime offices.

In this context, the Mediterranean city is working on three major projects. The first is a special plan for the port, which covers 1 million m2 of space, where a 37-storey hotel, three office buildings, a customs building and a large auditorium are going to be built if all of the relevant approvals are granted.

The second is the Los Martiricos development, a residential project on a site spanning 67,000 m2, where the plan is to build 220 social housing properties and 450 private homes. Offices and a commercial area will also be constructed if the corresponding building permits are approved.

The third major project is planned for the site of the former Repsol plant, where the Town Hall of Málaga wants to create an office area. Alternatively, it could build four blocks of social housing properties on that site.

The Andalucían city has many other projects underway. Most respond to the growth in residential demand, especially in the market for alternative assets, such as halls of residence for students and nursing homes for the elderly. But overall the real estate sector is booming. In fact, construction permits rose by 40% in 2018.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Barcelona Fines Two Funds €2.8M for Leaving 24 Flats Empty

4 March 2019 – Eje Prime

The mayor of Barcelona, Ada Colau, has fined two investment funds €2.8 million for leaving two properties empty for more than six years on Calle de Aragó and Calle Pau Claris, in the Eixample district. The fine has been issued under the Right to Housing Act from 2007, which establishes penalties for the poor use of homes that have a social function and which ought to be inhabited.

If a property remains vacant for more than two years, its owner may be fined by between €90,000 and €900,000 per home. In total, the buildings subject to these fines comprise 24 homes.

Colau defended her housing policy and pointed out that the fines form part of a comprehensive approach by her government that includes the construction of 70 new developments, the requirement for private developers to build 30% social housing and conditioning any help for renovations on maintaining rental prices.

The fines could be reduced if the owners agree to let the Town Hall include the flats in their social housing stock.

Original story: Eje Prime

Summary/Translation: Carmel Drake

High Land Costs Drive up House Prices in the Balearic Islands

27 February 2019 – Diario de Mallorca

The property market in the Balearic Islands is experiencing the perfect storm. Very high land prices are driving up the cost of the few new homes that are being built. As such, local residents are facing serious difficulties when it comes to affording a home.

Not only are land prices high; in many cases, the plots are owned by large business groups, which are opting to hold onto them to benefit from further capital appreciation rather than develop or sell them immediately. What’s more, the few new homes that are being developed are very expensive, beyond the reach of most local families.

These factors are compounded by the complete failure on the part of the public authorities to construct any social housing in recent years, which only serves to aggravate the housing shortage in the market.

There is a great deal of demand, not only from local families, but also from foreigners, who want homes of their own on the island, and from seasonal workers moving from other parts of the country. Moreover, supply is limited and as such, prices are soaring. This situation is made worse by the fact that many overseas buyers and renters can afford to pay more than most islanders, which is driving out the locals.

All in all, it’s a gloomy picture for island residents.

Original story: Diario de Mallorca (by F. Guijarro)

Summary/Translation: Carmel Drake

Cevasa Tripled its Profits YoY to €46.6M in 2018

28 February 2019 – Eje Prime

Cevasa’s profits soared in 2018. The company closed last year with a net profit of €46.6 million, multiplying its result from the previous year three-fold when it amounted to €15.5 million. In terms of revenues, they remained stable, with a slight increase of 8.4% to reach €15.8 million by December 2018.

The company’s operating result amounted to €61 million at the end of last year, an exponential increase with respect to the previous year, when it amounted to €17.5 million.

The company, whose full name is Compañía Española de Viviendas en Alquiler (the Spanish Company for Rental Housing) is dedicated to the private development of social housing units for rental. It currently has thirty housing developments underway, located primarily in Barcelona and the surrounding area.

Original story: Eje Prime

Translation: Carmel Drake