Over the past twelve months, Spain has seen a notable surge in the construction of state-supported housing. According to official data, from late 2024 to the fall of 2025, work began on 23,179 new VPO units—these so-called viviendas de protección oficial, or protected apartments. This represents a 40% increase compared to the same period a year earlier, when construction started on 16,464 such units. In just the third quarter of this year, 3,283 new VPOs were launched nationwide, indicating sustained interest in this segment.
Amid the overall rise in construction volume, the share of protected housing in the total number of new apartments reached 16.68%. In the past 12 months, construction began on 138,954 apartments across Spain, of which 115,755 are unrestricted housing and the remainder are VPO. Compared to the previous year, the share of VPO among all new builds increased by five percentage points, highlighting a shift in the country’s housing policy priorities.
Leaders and trends
The regional and sector breakdown of these new projects is particularly noteworthy. The Comunidad de Madrid emerged as the clear leader in new VPOs, with 10,408 protected apartments launched in the past year—nearly half of all new VPOs nationwide. Meanwhile, private developers far outpaced public entities: they accounted for 19,596 new VPO units, while the public sector added only 3,583.
This ratio indicates that private business is now the main driver in the development of affordable housing in Spain. Despite its stated priorities, the government has not yet been able to compete with the private sector in the volume of new developments. Nevertheless, authorities promise to change the situation in the coming years.
Trends in completed projects
Alongside the increase in new construction, the number of completed projects has also grown. Over the past 12 months, 14,317 protected apartments have been commissioned nationwide—30.1% more than a year ago, when growth was 26.5%. This trend shows that the affordable housing market is steadily reaching a new level, and demand for such properties remains consistently high.
Experts note that the growth in VPO completions is due not only to increased activity among developers but also to changes in government policy. Regional and central authorities are increasingly focused on supporting low-income families and young professionals, for whom buying or renting a home at market rates remains out of reach.
Plans for 2026
The Ministry of Housing and Urban Agenda (Ministerio de Vivienda y Agenda Urbana, MIVAU) has already announced major initiatives for the coming years. In particular, 2026 will see the launch of a new State Housing Plan running through 2030. A total of 7 billion euros will be allocated for these purposes, with 40% specifically targeted at developing the VPO segment.
In addition, the government plans to take a direct role in affordable housing construction through the special entity Casa 47 (Entidad Estatal de Vivienda). The plans include not only increasing construction volumes, but also introducing new technologies and supporting industry modernization through the PERTE program. These measures are expected to accelerate the launch of new housing and make homes more accessible to a broader segment of the population.
European prospects
Spain also expects to participate in Europe-wide initiatives to develop affordable housing. The ministry emphasizes that the country will be involved in all EU programs aimed at boosting construction and modernizing the housing stock. This opens up additional opportunities to attract investment and exchange experience with other countries.
Overall, market experts note that combining national and European programs could be a key driver for further growth in the VPO segment. In the coming years, Spain aims not only to maintain but also to increase the pace of protected housing construction to meet rising demand and reduce social tensions in the real estate market.
If you were unaware, the Ministry of Housing and Urban Agenda (Ministerio de Vivienda y Agenda Urbana, MIVAU) is Spain’s key government body responsible for developing and implementing policies on housing, urban environments, and infrastructure development. The ministry oversees both national and regional construction support programs, modernizes the housing stock, and drives innovation in the sector. In recent years, MIVAU has actively promoted initiatives to increase the supply of affordable housing and support low-income citizens.
