The Generalitat Valenciana’s decision to raise the price ceiling for protected public housing has drawn sharp criticism from the opposition. The new rate, set at €2,568 per square metre of usable area, is 7% higher than the previous €2,400 and was published in a resolution in the Diari Oficial de la Generalitat Valenciana (DOGV) in August 2026. At that ceiling, a 90-square-metre home would cost €231,120 before taxes and transaction costs. Opposition leaders say the price is out of reach for many Valencian families.
The increase follows a long period in which the protected-housing price module remained at €1,212.80 per square metre of usable area from 2013 to 2023. The Generalitat raised it to €2,200 in 2023 and then to €2,400 in 2024 under Decreto 180/2024. Reports cite rising construction-material and labour costs as reasons for the increases. The single regional module does not vary by municipality or local housing market.
María José Salvador, deputy spokesperson for the Socialist Group in Les Corts, has called on the Consell to reverse the latest increase, describing the new conditions as unsustainable for working households. A buyer financing 80% of a €231,120 purchase would need a mortgage of €184,896 and an upfront contribution of €46,224, before taxes and fees. The 80% figure is a common lending benchmark, not a guarantee of the amount a bank will offer. Over a 25-year term, a monthly payment near €900 is one possible scenario; the actual cost depends on the interest rate and loan terms. At that payment level, a general affordability guideline of mortgage costs at 30% to 35% of net income implies household income of roughly €2,570 to €3,000 a month, excluding other debts and ownership costs.
Salvador has also said the financial burden extends beyond monthly repayments. Buyers must cover the upfront contribution and associated taxes and transaction costs, creating a large barrier to entry. She argues that the Consell is blurring the line between protected and market-rate housing, making it harder for people unable to access the private market to find affordable options. Protected homes remain subject to their specific price and resale restrictions; the regulated ceiling is a maximum reference, not necessarily the price of every unit.
The deputy spokesperson has criticized the regional government’s approach, saying the Partido Popular has raised the protected-housing price cap twice in two years and that it has increased by nearly 17% since the previous administration. She contends that the policy prioritizes developers’ interests over those of Valencians seeking affordable homes. The broader policy challenge is to make projects viable while keeping prices within reach of households eligible for protected housing.
Salvador has demanded that President Juanfran Pérez Llorca withdraw the latest increase and restore protected housing to its intended role as a means of guaranteeing the right to housing, rather than a high-priced product with a public label. She has also warned that increasing the number of protected units will not solve the problem if prices exclude the target population.
Construction activity has nevertheless picked up alongside the higher price ceilings. Between January 2025 and 2 October 2026, the Generalitat provisionally classified 3,381 protected homes across the region, including 1,074 in the city of Valencia; seven in ten were privately initiated. In the city, protected-housing licence applications averaged about 100 homes a year from 2015 to 2023, then rose to around 290 in 2024 and 598 in 2025. Applications reached 453 during the first part of 2026, with a year-end projection of about 680. The Universitat Politècnica de València’s housing observatory has linked much of the increased activity to the updated price module.
The UPV has also projected that unrestricted new-build housing in Valencia could exceed €5,000 per square metre in 2027. Protected projects expected to be delivered between 2027 and 2029, particularly in non-basic neighbourhoods and the metropolitan area’s first ring, could offer a lower-cost alternative. At the current €2,568 module, a 60-square-metre protected home would cost up to €154,080. That remains a large purchase price, even below the projected open-market benchmark.
For mortgage valuations, buyers also face a distinction between the regulated sale price and the value accepted as collateral. Under the structure set out in Orden ECO/805/2003, the legally capped value of protected housing must be considered alongside market value, with the lower applicable figure used for guarantee purposes. That can affect the amount a lender will advance. Separately, the Plan Estatal de Vivienda 2026-2030 is reported to mobilise €7 billion, with at least 40% allocated to expanding social and affordable housing. Its structure includes the possibility of permanent protection for publicly supported homes and a minimum 50-year protection period for some publicly financed rental housing.
Rising housing costs are not unique to Valencia. Across Spain, regional price surges have affected both public and private accommodation. In Andalusia, for example, rental prices reached unprecedented levels ahead of the 2027 solar eclipse, with accommodation rates reaching record highs.
Protected housing in Spain is designed to offer below-market prices to people who cannot afford private-sector rates. Recent changes in Valencia have intensified debate over how effectively current policies meet that goal, as families and policymakers consider whether supply and pricing can serve eligible buyers while accounting for developers’ and prospective buyers’ interests.
