At the beginning of 2026, Alicante province will launch an ambitious initiative set to reshape the local rental market. The Instituto de Crédito Oficial (ICO) has granted a substantial loan of €44.7 million to Vivasval 2, part of the Visoren group. The goal is to construct six residential complexes totaling 330 apartments with reduced rent, along with 58 storage units and 349 parking spaces. All the properties will be built on municipal land plots in San Juan and San Vicente del Raspeig, allocated to the developer under a long-term lease of up to 55 years, extendable by another two decades.
With demand for affordable rental housing in Comunidad Valenciana surging, this project appears to be a timely response to current challenges. Total investment in construction is estimated at €60 million. The apartments will be leased at rates about 25 percent below the local market average for comparable properties. This strategy promises to shake up the established rules of the region’s real estate market.
Project details
Vivasval 2, a company specializing in the management and development of affordable rental housing, is already active in the Valencian Community. The company currently operates 139 similar apartments in the region and manages more than 1,300 properties across Spain. The new target is to increase the number of units operated in the autonomous region to 1,000 within the next three years. This will further establish the company as a key player in the affordable rental market.
Construction will take place on land previously managed by the Entidad Valenciana de Vivienda y Suelo, the regional housing and land agency. The transfer of long-term usage rights became possible through the ‘derecho de superficie’ mechanism, which allows developers to build and operate properties without owning the land. Such public-private partnership models are gaining popularity across Spain.
Financing and guarantees
The financing is carried out within the framework of the national Recovery, Transformation and Resilience Plan, which is funded by European Next Generation resources. Specifically, the project falls under the special ICO Vivienda line, aimed at expanding the stock of social and affordable housing as well as upgrading existing municipal facilities. A key feature is the provision of government guarantees: the Ministry of Housing and Urban Agenda (Ministerio de Vivienda y Agenda Urbana, MIVAU) covers up to 50% of the loan amount, reducing risks for investors and speeding up the implementation of such initiatives.
Authorities emphasize that such projects not only increase the rental housing supply but also encourage new partnership models between the public and private sectors. With rental prices continuing to rise and affordability becoming a growing concern, these schemes are seen as a practical tool for stabilizing the situation.
Impact on the market
The addition of 330 new apartments with reduced rents in two Alicante suburbs could become a catalyst for further changes in the region’s real estate market. Experts note that similar projects can not only ease the burden on tenants, but also set a new benchmark for future developers. However, it is possible that demand for such apartments will significantly exceed supply, leading to increased competition among those seeking affordable housing.
At the same time, the involvement of private companies in implementing government affordable housing programs raises questions among some observers about the long-term sustainability of such models. However, so far the results appear promising: the state assumes part of the risk, while businesses gain incentives to invest in a sector previously seen as unattractive.
Plans and Prospects
Vivasval 2 has already announced plans to further expand its portfolio in the Valencian Community. The company aims not only to increase the number of properties but also to introduce new standards of quality and energy efficiency in its projects. In the coming years, similar initiatives are expected to emerge in other regions of Spain, where the issue of affordable housing is particularly acute.
Overall, the project in Alicante could become a model to follow and a starting point for broader changes in the country’s housing policy. If the experiment proves successful, public-private partnership in the affordable housing sector will receive renewed momentum, giving renters long-awaited relief from relentless price increases.
RUSSPAIN reminds that the Visoren group, which includes Vivasval 2, specializes in the construction and management of residential complexes with regulated rent throughout Spain. The company actively participates in national and municipal affordable housing programs and implements innovative property management solutions. In recent years, Visoren has established itself as one of the market leaders in the social and affordable housing sector, carrying out projects across different autonomous communities of the country.
