Costa News Spain Breaking News | English News in Spain.
The new sovereign fund in SPAIN will pay for up to 15,000 rental homes that are affordable each year.
Pedro Sanchez, Prime Minister of Spain, pledged the money on Monday at the official launch of the fund.
España Crece(Spain Grows) aims to create a pot of up to €120 billion in public and private funds.
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Of that amount, €23 billion will be allocated to constructing new rental properties.
Pedro Sanchez stated: “We are aiming to provide private investors with a red carpet to build housing.”
“This commitment is to provide the maximum amount of public and private funding under favorable conditions,” he said.
At the Madrid College of Architects, Sanchez was accompanied at the event by the majority of his ministers.
Housing is one of the key pillars, along with energy transition, business competitiveness and digitalization.
The government wants to boost investment and reuse EU recovery funds in order to avoid a budgetary impasse.
Housing costs continue to be a major issue for the people of Spain. In a poll conducted in January 2026 by the CIS Institute for Public Opinion, 42.6% of respondents cited housing as the top problem facing the country.
Data from Eurostat shows house prices in Spain rose 12.8% year-on-year in the third quarter of 2025 — among the biggest hikes in the European Union and well above the zone’s average annual increase of 5.5%.
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