Anyone seeking a protected living space must meet a basic set of requirements. These include reaching the legal age, residing in Spain, not owning another home, belonging to certain eligible groups, or demonstrating an economic need measured by the IPREM (Public Multiple Income Indicator) tied to each autonomous community. The 2018-2021 State Housing Plan delegates authority in this area to the autonomous communities, so access requirements for a protected home vary by region, explains finance expert Antonio Gallardo. iSaves.
Beyond the conditions that an owner must satisfy, the homes themselves are considered protected housing if they meet specific criteria. The key factors are that the dwelling has the maximum selling price, the maximum usable or built area, compliance with design parameters, and that occupants use it as their primary residence rather than as a second home, according to Gallardo.
Several distinctions exist depending on the situation. There is subsidized housing often labeled as government protection (VPO), which includes variations such as public servant protection (VPOPP) or appreciated price (VPT); along with public protection (VPP) and other categories. Basic public protection housing (VPPB) typically does not exceed 110 square meters, while limited-priced public protection housing (VPPL) is capped at 150 square meters.
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When it comes to official protection housing, the arrangements are organized by each autonomous community. There is an official, region-wide register in Spain where available homes are listed. Each administration should monitor these homes and maintain a public list where citizens can enroll as applicants so that when a VPO becomes available, they are notified and can apply.
A major challenge noted by experts is the limited supply of such housing. iAhorro’s financial advisor notes that the current volume of subsidized housing is tight, and in many cases, the stock is quite marginal. Some observers compare current levels to pre-crisis figures, suggesting a stagnant market.
Ministry of Public Works data show that in 2006, more than 97,000 protected houses were built in Spain before the financial crisis. By that year, the number of homes approved under the subsidized housing regime had begun to decline.
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In recent years the number of properties classified as protected has dropped sharply. In a decade, protected housing entries fell by 82.92%, from 58,308 in 2011 to 9,957 in 2021, the most recent year with full data. The steepest slide occurred between 2012 and 2013, when 36,273 homes lost protected status, a drop of 68% in that single year.
Less help to build and more unequal distribution
The causes of this decline are multi-faceted. Gallardo explains that a major factor was the elimination of subsidies in 2011, which had previously supported developers to counterbalance caps on housing prices aimed at units built for sale. This shift reduced incentives for new protected homes and altered the housing landscape.
Looking at 2021 figures, the expert notes that more than eight in ten subsidized homes were built by private developers, while fewer than two out of ten were built by public promoters. The distribution of subsidized housing also varies significantly between autonomous communities. The Community of Madrid currently hosts the highest number of subsidized homes. It is followed by the Basque Country, which has substantial counts of leased and owned units, though serious gaps remain. Some regions, such as the Canary Islands or the Region of Murcia, have little to no subsidized housing, according to data from the Ministry of Development.