Spain and Portugal launch new public‑housing projects and rent‑aid expansions

The municipal government in Portugal approved two initiatives that will create more than 100 new public rental units and acquire the historic Agrarian Chamber building in Madrid for mixed‑use housing and a day‑center, part of a broader effort to address affordable‑housing shortages.

In Spain, the average rent rose 12.16% year‑on‑year to €14.76 per square metre in May, with Madrid registering the highest price at €21.89 /m². Housing Minister Isabel Rodríguez stressed that illegal occupation affects only 0.04% of dwellings, pointing to access‑to‑housing as the main problem and noting that 111,000 illegal tourist apartments could cover 17% of the national housing deficit.

The Valencian administration expanded its 2025 rental‑aid programme, allocating €7.13 million to benefit an additional 2,969 families, raising total beneficiaries to 12,731 and the budget to €30.9 million. Meanwhile, the Community of Madrid announced a €7 million plan to convert vacant basements into social homes, targeting more than 150 units across several municipalities.

Local authorities in Sanse, Las Gabías and other Spanish towns also approved licences and land transfers to finish or start protected‑housing projects, adding dozens of new affordable apartments to their municipal stock.