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Spain’s €7 Billion Housing Plan Sets Off Regional Moves

Madrid targets a June vote on a fast-track law to add 18,000 protected homes, with Castilla-La Mancha confirming its co-financing share.

Overview

  • Following Tuesday’s cabinet approval of the 2026–2030 plan, the government set a €7 billion package with a 60% state and 40% regional split and earmarked 40% for new builds, 30% for rehabilitation, and 30% for aid to young people and vulnerable households.
  • Madrid’s government said it is open to accept its allocation of about €1.113 billion while advancing its own urgent law that raises building height by up to two floors, lifts density by 30% and floor area by 20%, trims parking minimums to one space per flat, and seeks passage in June by single-reading procedure.
  • Castilla-La Mancha confirmed adhesion to the national plan and agreed to fund 40% of its €280 million envelope, reversing earlier objections to the higher regional burden.
  • The state plan permanently shields public and protected homes from privatization, adds an anti-fraud clause for housing allocations, creates a monitoring group, and promotes factory-built construction to speed delivery.
  • Critics from opposition parties and parts of the sector call the plan late or unworkable without state budgets and faster land release, a debate sharpened by Spain’s housing squeeze, where roughly 100,000 homes are built each year against far higher estimated need.