Spain’s drawn-out battle to reclaim property continues: Sareb, the company managing bank assets after the financial crisis, is still struggling to resolve the issue of occupied apartments. As of autumn 2024, the organization is involved in nearly 3,300 legal proceedings in an effort to regain control over homes taken without legal grounds. Over the past two years, the number of such cases has decreased only slightly, highlighting the complexity and protracted nature of the process.
Constant Movement: New and Old Problems
Sareb’s housing stock is in constant flux: some apartments are vacated, while others become occupied once again. This creates a vicious cycle in which the company is forced to evict some residents while launching new cases against others. Such dynamics harm Sareb’s financial position, as every new lawsuit requires time, resources, and money.
In September 2023, the company owned about 3,600 properties occupied by families who either do not meet the criteria for social housing or are unwilling to legalize their status. This means a significant portion of Sareb’s housing portfolio is not generating income; on the contrary, it incurs extra expenses for taxes, utilities, and maintenance.
Financial Losses and Asset Devaluation
The situation with seized apartments leads to significant losses. When Sareb regains possession of such properties, they are often found in poor condition: the apartments usually require major repairs, and their market value drops by 65–70% compared to similar vacant units. This impacts the company’s balance sheet and reduces the appeal of its portfolio to investors.
In addition, Sareb is forced to pay all mandatory expenses for these apartments despite receiving no income from them. As a result, each new case of property occupation becomes not only a legal, but also a financial issue, further worsening the company’s position.
Social initiatives and rental programs: shifting the balance
Amid these challenges, Sareb is actively expanding its social housing programs. We previously reported on this topic. By 2025, the company has allocated more than 11,500 apartments for those in need, providing housing for around 35,000 people. This includes properties handed over to state and local authorities, as well as apartments given to victims of natural disasters, such as after the flood in Valencia.
The majority of the portfolio is earmarked for rental programs with support and labor integration. In two years, the number of such apartments has nearly doubled: from 6,000 to 9,800. However, even with this growth, for every three social apartments, one remains illegally occupied, highlighting the scale of the problem.
Challenges and future outlook: what lies ahead for the housing market
The issue of occupied apartments remains one of the most pressing challenges for the Spanish real estate market. Despite efforts to expand social housing, Sareb has not been able to fully turn the situation around. Legal proceedings drag on, and new cases of occupation continue to emerge. This puts additional pressure on the market and hinders the effective use of housing stock.
In the coming years, the company plans to continue efforts to reclaim properties and increase the number of apartments available for social rent. However, experts note that without changes in legislation and stricter measures to prevent occupations, the problem is unlikely to be resolved quickly.
As RUSSPAIN previously reported
Company Sareb (Sociedad de Gestión de Activos procedentes de la Reestructuración Bancaria) was established in 2012 as a tool for managing troubled assets of Spanish banks affected by the financial crisis. The organization’s main task is to purchase and subsequently dispose of real estate and loans that ended up on bank balance sheets following a wave of bankruptcies. Since its inception, Sareb has repeatedly faced criticism for its slow operations and complicated relationships with tenants. In 2022, control of the company was transferred to the state Fund for Orderly Bank Restructuring (FROB), which enabled more active development of social programs. Nonetheless, Sareb remains under close scrutiny from both the public and authorities, with its activities regularly sparking debate among real estate market experts. In recent years, the company has focused on cooperating with municipalities and increasing the number of apartments available for social renting, but the issue of illegal occupancy remains one of the most challenging problems for the entire system.
