European Investment Bank Doubles Funding for Affordable Housing in Spain
The European Investment Bank has nearly doubled its financing for affordable and sustainable housing in Spain to around €2 billion for 2024-2025, supporting the construction of about 11,000 homes while fiscal improvements continue amid rising expenditure concerns.
- • The EIB allocated nearly €2 billion for affordable housing projects in Spain for 2024-2025.
- • Around 11,000 new affordable and sustainable homes are planned across various autonomous communities.
- • Barcelona received a €113 million loan for social rental housing developments.
- • Despite doubled funding, challenges remain due to a 10% rise in housing prices in 2025.
- • Spain reduced its public deficit to 2.4% of GDP, but spending growth raises fiscal sustainability concerns.
Key details
The European Investment Bank (EIB) has significantly increased its financial support for affordable housing projects in Spain, allocating nearly €2 billion for the 2024-2025 period. This enhanced funding aims to facilitate the construction of approximately 11,000 new affordable and sustainable homes across several autonomous communities, including Catalonia, Castilla y León, the Valencian Community, and Andalusia.
Among the key allocations is a €113 million loan to the Barcelona City Council to promote nine social rental housing projects. Additionally, the EIB has granted €45 million to Huma, a company specializing in innovative construction materials, to support sustainability in the housing sector.
EIB President Nadia Calviño highlighted that the funding for housing has doubled compared to the previous period. However, she cautioned that despite this increase, the financing remains insufficient to fully address Spain's structural housing access challenges, especially in urban areas where house prices rose by 10% in 2025.
In a broader context, Spain was the primary recipient of EIB funds in 2025, with a total mobilization of €11 billion. Besides housing, the EIB increased funding in sectors like defense, quadrupling investments to €500 million for research and development projects. It also maintained its focus on major infrastructure, with €1.9 billion invested in electrical grid projects and €1.5 billion in transportation.
This surge in investment comes amid Spain's ongoing fiscal adjustments. According to BBVA Research, Spain reduced its public deficit to an estimated 2.4% of GDP by the end of last year, aided by economic growth. Nonetheless, concerns remain as net primary expenditure rose by 4.5%, surpassing the government’s 3% target, potentially affecting future fiscal stability if economic growth slows.
Overall, the EIB’s doubling of affordable housing funding underscores a strong commitment to sustainable development in Spain but also highlights the persistent challenges in making housing more accessible amid rising costs and fiscal constraints.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
