Sareb, known as the so-called bad bank, launched a first phase in 2012 to absorb troubled real estate assets mostly from former savings banks. The plan envisions ending this year or beginning next year with a major push to build 3,500 affordable rental homes through a public-private partnership. The developments will span 42 locations across 33 municipalities in 19 provinces within 10 autonomous communities, supported by 400 million euros.
The broader program aims to deliver affordable housing with rent prices about 20% below regional market averages. In total, 15,000 homes are planned, with land transferred to private developers for an 80-year term and rolled out in multiple stages, with an option for withdrawal by the government at the end of each period. Financing for this initiative is anticipated through the European Investment Bank, and the plan is included in the annex of Spain’s recovery framework approved by the European Commission.
Part of a larger effort titled 50,000 Sareb homes in line with government social housing goals, the initiative was announced by President Pedro Sánchez in the spring. Of the 50,000, 15,000 are expected from land transfers, another 14,000 from social leases. The central hub of the program is Vienna, according to statements from Sareb leadership, including company president Javier Torres and Pau Pérez de Acha, who serves as Social and Affordable Housing and Corporate Affairs Director, in discussions with the press. Sareb currently holds around 21,000 built properties available for sale, with the center of gravity located in Cornellà de Llobregat.
To close
The program begins with outreach to households in Sareb properties that have irregular housing situations. Families may range from those without a formal lease to those with leases but tied to former operators. In collaboration with municipal services, Sareb evaluates residents’ vulnerability levels and invites eligible households to participate by signing a social tenancy agreement. Monthly rent is capped at 30% of the household’s income.
Participation in the program also requires engagement in a social support plan and in a separate job placement initiative. Among beneficiaries, 73% are nuclear or single-parent families with an average of two young children, and 17% include at least one disabled family member. Approximately 1,660 homes are occupied by non-vulnerable residents or by households opting not to participate in Sareb’s social rental and support program; in these cases Sareb pursues the preservation of homes through judicial or amicable channels.
The Sareb chair underscored that the social housing scheme makes economic sense. It generates revenue that would otherwise be unavailable, reduces the default rate from 100% to around 15%, and yields a positive operating outcome rather than a loss. The plan also anticipates a revaluation of the portfolio by more than 350 million euros.
Torres noted that Sareb sells between 8,000 and 9,000 second-hand homes in Spain each year, with 92% purchased by individuals. The average price for these properties is about 97,000 euros.
Spain’s push to reach social housing levels seen in other European countries will require a substantial effort. Currently, social housing accounts for roughly 2.5% of the total housing stock, compared with 3.9% in Germany, 3.7% in Italy, 16.8% in France, 17.6% in the United Kingdom, 24% in Austria, or 9.3% on average across the European Union. According to Torres, attaining these targets would necessitate the construction of around 1.2 million homes in Spain.