Xunta de Galicia housing budget cut amid rising property prices

The Galician regional government, the Xunta, is facing scrutiny over housing policy as budget cuts coincide with rising property costs. In 2025, the Department of Housing saw a budget reduction of approximately 58.8 million euros from its initial 493.5 million euro allocation.

This reduction occurs as housing prices in Galicia have risen significantly. According to the National Statistics Institute (INE), free housing prices increased by 12.9% year-on-year through the second quarter of 2026, with used housing prices rising by 13.7%. Rental prices have also seen increases, particularly in smaller municipalities with fewer than 5,000 inhabitants, where rates rose by 12.3%.

In response to the housing crisis, President Alfonso Rueda has emphasized the government's commitment to providing dignified housing. The Xunta recently delivered 24 affordable rental units in Lamas de Abade, Santiago de Compostela, marking the first public promotion deliveries in the city in nearly two decades. The regional government aims to double its public housing stock to 8,000 homes by the end of 2028, with 4,000 currently in progress. Additionally, the maximum support for protected housing intended for sale has been increased from 10,000 to 42,500 euros.