Measures in the field of housing

Policies from the Central Government targeting the housing market and, as a result, the real estate sector.

Dear Clients:

Today, we aim to discuss the measures from the Central Government directed at the housing market, and consequently, the real estate sector. Without any political consideration or opinion, and while we await the development of these measures once the legislative (all political forces) and executive branches "seriously decide to implement them," we will comment on them. On Monday, January 13th, 2025, through the Ministry of Housing and the Government of Spain, a package of new measures concerning housing was announced. These measures aim to improve the housing situation (both in rental and ownership) and focus on three priority objectives:

• More housing;

• Better regulation to protect consumers and users, without forgetting the owners;

• Greater assistance to introduce both second-hand and new housing into the market, starting with an initial goal of transferring 3,300 homes and 2 million square meters of residential land to the new Public Housing Company to build affordable rental homes. Another 30,000 homes will be diverted to the mentioned public company, still pending creation (we’ll see how fast this goes...). A new regulation will have to be created to prioritize the purchase of housing by the Public Housing Company, ensuring that these homes remain public indefinitely.

  
  

We must stay vigilant so that our clients can benefit from this situation and assess how it could lead to profitable short, medium, and long-term investments. We are watching to study the new framework that will be introduced in the future and see how the real estate sector, as an economic driver, can remain profitable for both domestic and foreign investors. Special emphasis is placed on investors who have allocated part of their funds or savings to the vacation rental market, which, despite increased government control and intervention, we believe will continue to be profitable.

We must also see how the Government will promote collaboration between public and private entities to boost housing construction in Spain, deploying 6 billion euros in loans and ICO guarantees, launched in August 2024, to facilitate the construction of 25,000 new homes.

In addition to the other measures announced, today we highlight the push for amendments to the Land Law, the creation of protection measures not only for tenants but also for landlords, as well as tax incentives (exemptions that could reach up to 100%—we’ll see under what conditions) that may arise from owning one or more homes and introducing them into the market.

We must remain attentive to how both the Government and the Autonomous Communities wish to develop these measures, still in an embryonic phase.

From this professional office, we remain committed to ENSURING that the investments made do not suffer any loss and that future investments become new and excellent business opportunities. Our philosophy has always been that, in the face of a new framework, and after a personalized analysis of each client's situation, a good opportunity can arise. With legal certainty, we aim to consolidate both existing and upcoming investments. There is no legislative framework that can limit entrepreneurs and future business opportunities. We will be here to continue providing business security, professionalism, and support for any entrepreneurial initiative.