Andalusia Allocates 85 Properties to Boost Housing and Economy Amidst Rental Market Struggles
Andalusia's government allocates 85 properties to promote housing and economic growth amid tough conditions in Spain’s rental market, criticized by economists.
- • Andalusia allocates 85 properties for housing and business development, including 171 new homes.
- • Sales through AVRA's Permanent Offer surpassed two million euros; June auction generated over 7.4 million euros.
- • Minister Rocío Díaz emphasized underused land utilization to boost the economy and housing supply.
- • Economist Gonzalo Bernardos criticizes tax rules forcing landlords to declare unpaid rental income, calling landlords 'heroes'.
- • Rising housing prices and taxation challenges worsen Spain's rental market outlook.
Key details
The Andalusian government has allocated 85 properties across the region, including 36 residential plots for 171 new homes, to stimulate the local economy and support housing development. According to the Agencia de Vivienda y Rehabilitación de Andalucía (AVRA), these allocations also include 21 industrial and tertiary parcels aimed at attracting new businesses, 17 garages, commercial spaces, and a sports-use plot. Fomento Minister Rocío Díaz emphasized the importance of repurposing underused land to invigorate productive sectors and generate economic growth in Andalucía. Sales through AVRA's Permanent Offer exceeding two million euros include plots in Córdoba, Huelva, Jaén, Málaga, and Sevilla, with notable projects such as protected housing and a rental reduction of 40% for the first two years in Málaga. Also, a June auction of 45 properties generated over 7.4 million euros, featuring large residential parcels in Jerez de la Frontera and Obejo. Meanwhile, Spain’s housing market faces significant challenges beyond Andalucía, especially in rental conditions. Economist Gonzalo Bernardos criticized a new ruling from the Central Economic-Administrative Tribunal (TEAC) that forces landlords to declare rental income on their taxes even when tenants do not pay. Bernardos described landlords as "heroes" struggling with tax burdens, community fees, and utilities without receiving income, warning that the rental market outlook is bleak. The ongoing rise in housing prices and regulatory burdens compound difficulties for both buyers and renters in Spain’s housing landscape.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.