In the private sector, early doubts surface about the first measures the Ministry of Housing plans to approve. The department, led by former Administration Spokesperson Isabel Rodríguez, is set to advance two macroeconomic lines in the cabinet this month through the Official Credit Institute (ICO): 4 billion euros to fund housing construction for affordable rental, and 2 billion euros earmarked for guarantees that support purchasing. The emphasis remains on making apartments more accessible for young adults and families with children.
While industry insiders initially welcomed the move, initial criticism is emerging from within banking and real estate circles. “We have held discussions with the Ministry of Housing and the ICO. Both funding lines are progressing, yet we continue to offer recommendations to ensure these measures deliver real value,” stated Daniel Caballero, Director of CaixaBank’s Real Estate Business, during an event hosted by the financial institution and Madrid’s real estate association ASPRIMA.
Caballero urged the state to maintain flexibility in shaping both funding streams and warned that excessive rigidity could dampen private participation. “We are watching to see how far the ICO and the Ministry will bend to accommodate private initiative.” Mikel Echavarren, CEO of the consultancy Colliers, echoed the caution: “There is a risk if timely action is not taken. Private organizations can be more decisive. Urgent access to housing is a current issue, not a distant one.”
More precautionary suggestions from the private sector
At the same forum, the private sector pressed for greater ingenuity from public administration when crafting housing policy. Sergio Gálvez, CEO of AQ Acentor, estimated that a billion euros could unlock opportunities for roughly 25,000 to 30,000 young people to purchase homes. Similarly, Echavarren argued that guaranteeing a portion of purchases not financed by banks, rather than guaranteeing 15% or 20%, would be more affordable for the public purse while still mitigating risk.
The Colliers chief executive urged broader tax policy changes, proposing that VAT management be devolved to communities. “The state collects more than 20 billion a year in VAT, while funding lines reach about 6 billion. If there is a 10% VAT on the sale of a home, the state should guarantee it and also cover any taxes generated during production,” he stated. He noted that the transfer tax on second-hand properties varies by region—Madrid’s rate is among the lowest, while other regions exceed 10% in many cases.
Teresa Marzo, CEO of Elix, highlighted the importance of tax considerations, remarking, “Taxes are a significant cost in total investment, exceeding 25% in many cases. Encouraging housing from a tax perspective is crucial.”
CaixaBank’s Real Estate Business Director defended the existing purchase guarantees already in place across several regions. “The ICO has proven particularly effective for home purchases in the Balearic Islands, Andalusia, and the Community of Madrid, sometimes surpassing our initial expectations. We recorded around 500 transactions in the capital and more than 100 on the islands. In Andalusia, the impact was somewhat lower because the agreement was finalized late in 2023. The overall result remains positive and guides us toward a pathway that helps young buyers access affordable homes. The typical value of homes purchased with CaixaBank mortgages ranges from about 109,000 to 156,000 euros, illustrating the program’s tangible benefits.”
The conversation underscores a shared recognition that housing affordability requires a multi-faceted strategy. The private sector continues to advocate for mechanisms that reduce barriers for first-time buyers while ensuring public funds are used efficiently. Observers note that the balance between state guarantees, tax incentives, and private financing will shape how quickly and effectively these measures translate into real housing opportunities for families and young people alike. In the broader context, stakeholders stress that continued evaluation, adaptability, and collaboration between government agencies and financial institutions will be essential to sustaining momentum and achieving meaningful progress in public housing access. Source attributions: CaixaBank Real Estate Division, Colliers International, AQ Acentor, Elix.