Spain’s prime minister, Pedro Sánchez, has announced the creation of a new state-owned investment fund called España Crece (“Spain Grows”). The initiative aims to invest €23 billion to build around 15,000 flats and houses per year. Its main goal is to make housing more affordable and reduce the country’s housing shortage.
“We need to build more public and affordable housing. A lack of financing must not become another obstacle,” Sánchez said.
The government plans to attract both public and private capital. The fund will be managed by the state-owned bank Instituto de Crédito Oficial (ICO), which will receive additional funding of €13.3 billion. Of this amount, €10.5 billion will come from the EU’s Next Generation programme, while €2.8 billion will be provided through non-repayable transfers. The total volume of funds available to ICO will rise to €60 billion, and up to €120 billion with the participation of private investors.
“The fund will roll out the red carpet for private investors, but not for speculation based on a constitutional right, rather for building housing for the majority of citizens who face difficulties, and sometimes even impossibility, in accessing a home,” Sánchez noted.
The money will be distributed in the form of loans, guarantees and direct investments. Priority will be given to the construction of affordable housing, although projects in green energy and innovation will also be eligible for support.
