Previously stalled schemes are now up and running across the country as the government tries to address knock on effects of rising rents.
Soaring property prices in Madrid and Barcelona have been driving out locals at an alarming rate for the last decade, reports the Financial Times. In a bid to provide more housing, municipal and national authorities have launched affordable housing programmes, which initially struggled to gain traction but are now starting to make an impact.
These social housing programmes are based on the subsidised construction of new neighbourhoods complete with urban infrastructure around Madrid and Barcelona. Other Spanish cities suffering from housing shortages are also benefiting from the initiative.
Investing in cheap real estate units in and around Spain’s large cities is becoming a serious option for buyers with more modest means looking to enter the market. Moreover, Balcells Group analysts are predicting a continued growth of the Spanish real estate market in the new decade due to the high activity of the construction sector, consequences of Brexit (with Brits looking for a way to travel freely in the EU), and revitalisation of previously deserted regions through the development of affordable housing.
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