Expansion of the affordable housing program
New residential projects focused on affordable rentals will soon begin in the province of Alicante. Over the past five months, more than 500 apartments have already been financed under a special program, and now over 300 more units with capped rental prices will be added. Banco Santander, acting as a partner in these initiatives, plays a key role in the financing.
Details of new projects in Alicante
The third deal involves granting a loan to a developer that is part of a joint venture between the German management company Patrizia and the investment group Urbania. In total, 319 apartments with limited rental prices will be built across five developments in the province of Alicante: one on Vasco de Gama Street in the provincial capital, another in El Campello, and three complexes in San Juan de Alicante.
Program implementation in other regions
Similar projects had previously been launched in Toledo and Vitoria. At the end of May, Santander and ICO provided funding to Torgiko, part of the Sarkis-Lagunketa group, for the construction of 120 apartments with capped rental prices in the Zabalgan district of Vitoria. In September, another agreement was signed to finance 86 apartments in Toledo, in the Santa María de Benquerencia area, where parking spaces, storage rooms, and commercial premises were also planned. Over five months, the program succeeded in launching the construction of 525 apartments with capped rental prices.
Financing and Government Support
The program is being implemented as part of the second phase of the national recovery plan. Two billion euros have been allocated for these purposes, aimed at the construction and renovation of buildings for affordable and energy-efficient rental housing. The Ministry of Housing and Urban Agenda (MIVAU) provides a 50% guarantee, helping to reduce risks for market participants.
Future Prospects
According to ICO, funding has already been approved for 6,000 apartments across the country. The loan and guarantee scheme is attracting interest from developers. In March, ministry representatives reported that projects for around 27,000 apartments were under consideration, which is more than half of the planned total of 43,000 units. At present, 725 million euros have been allocated for the implementation of 6,000 projects.
Origins and Terms of the Program
The ICO-Vivienda line was approved by the government in the spring of 2024. The total funding amounts to four billion euros, intended to expand the supply of affordable rental housing and modernize the existing stock. Both public and private developers can apply for participation. The funds come from the national recovery plan, while an additional two-billion-euro line provides government guarantees for up to 50% of loans. Santander also participated in the first two projects.
