A state call for proposals for €100 million to buy homes: can I sell my house?
The Spanish government launches the previously announced measure to incorporate apartments into the public housing stock.
BarcelonaOne of the main objectives of government agencies in addressing the housing crisis is to increase the available housing stock, with a particular focus on social housing. This involves building new apartments or mobilizing existing ones. Regarding the latter, the Spanish government has approved the previously announced public call for proposals for €100 million to acquire private homes throughout Spain.
What does this measure entail?
At the end of last year, the Spanish government created Casa 47, a state housing entity formed from the historic Sepes (State Holding Company for Public Investment) with the aim of increasing and managing the entire public rental housing stock—including land and apartments mobilized from other ministries or even the Asset Management Company for Assets Arising from Bank Restructuring (Sareb). It will also be responsible for planning, purchasing homes, and handing over keys. As part of its housing acquisition function, its governing board has now approved a call for applications from individuals and companies to submit properties they own. The submission period will last four months from the date the call is published on the Public Sector Procurement Platform. What homes will it buy?
The acquired properties will be added to the public housing stock and offered on the market as affordable rentals. The process will operate like a competition: interested parties will submit their properties, and Casa 47 will prioritize offers located in areas with high demand for housing. In Catalonia, this encompasses 271 municipalities, home to 90% of the Catalan population. Properties between 40 and 120 square meters that are not already publicly subsidized and meet certain requirements can be submitted. These requirements include being located in an apartment building (single-family homes are excluded), having exterior views, having an elevator if above the fourth floor, and including a kitchen, main living area, and full bathroom. The property must be delivered unfurnished, except for fixed fixtures or fittings, such as the kitchen. Lofts and studios are also eligible. And how much will they pay?
Casa 47, as explained in a statement this Friday, will purchase the offered price provided it aligns with the property's appraised value and does not exceed the average sale price established by the Notary Public's Statistical Portal for each area. Specifically, it will be the lowest of the seller's offer, the official appraisal value from an accredited agency, and the average price per square meter as indicated by the Notary Public's portal. Thus, for a 70-square-meter property in an area where the average sale price is €2,000 per square meter, the maximum price will be €140,000. With the €100 million budget, Casa 47 plans to cover the sale price, all related expenses and taxes—including the appraisal—as well as the cost of any necessary renovations, improvements, or refurbishments, provided the total cost does not exceed 110% of the appraised value.
What if I've made renovations?
The Ministry of Housing and Urban Agenda has explained that the call for applications will reward quality, accessibility, and energy efficiency. Thus, homes that comply with universal accessibility regulations, those that have been recently and comprehensively renovated, or those with an energy rating of A, B, or C will receive higher scores in the allocation process. The maximum score will be 50 points. Although applicants must choose the lowest value among the seller's offer, the appraisal, and the average price per square meter from the Notary Statistical Portal, "additional limits" will apply if renovations have been carried out. What if there is a mortgage? And can I sell a building?
The property must be transferred free of encumbrances, so if a mortgage exists, a simultaneous cancellation mechanism at the notary's office is provided to ensure the transfer is free of any liens. At the same time, as many properties as desired can be listed, and offers can be made for an entire group of properties.
