Sánchez allocates 1.3 billion to the construction of prefabricated housing

MadridThe Spanish government is taking another step forward in the macro plan announced in January to mobilize affordable rental housing. one of the twelve measures outlined four months ago, will be endowed with 1.3 billion euros, as announced by the President of the Spanish Government, Pedro Sánchez, this Thursday. The money will be channeled over ten years through different financial instruments, including loan lines from the Official Credit Institute (ICO) with favorable conditions. It should be noted that this strategic project is supported by European funds in the form of a Recovery Plan loan, which Spain has already begun to receive. "It will be a key tool to place Spain at the forefront of industrialization in the construction sector," said Sánchez.

This PERTE aims to increase the construction of industrial housing and, therefore, boost the supply of this type of property, also known as properties leaving the factory. Industrialization has long entered the processes in the field of construction to make it more technological, safe, efficient and sustainable. manufacturing of housing, following in the footsteps of other industrial products, such as the automobile. In Sánchez's eyes, this process not only allows for "building more and better," but also "building faster and at more affordable prices." The Spanish government estimates that construction times can be reduced by between 20% and 60% through industrial processes.

The president of the Spanish government has explained that with this budget, an average of 15,000 industrialized homes can be built each year and more than 20,000 within ten years. Developers and builders have long lamented a offset in floor construction, which has been dragging on since 2009, and is considered one of the sources of the current housing crisis.

In addition to focusing on the construction process, Sánchez took the opportunity to once again ask the parliamentary groups in the Congress of Deputies to approve the reform of the land law. "It is a necessary law that has the support of the [construction] sector. I am calling on the Cortes Generales so that we can modify this law to promote containment of the price of the sun and provide legal security for those involved in the construction industry," said Sánchez.

More apartment purchases

And while the Spanish government continues to search for ways to mitigate rising rental prices, mortgages continue to soar in 2025. Mortgage loans for homes in Catalonia have experienced two consecutive months at their highest level since 2011, in January and February. This increase in mortgage demand is also reflected in the absolute amount of loans: mortgages worth €1.289 billion were signed in February, the highest figure since €2.277 billion in February 2008, with the exception of February 2020, when they soared just before the outbreak.

Across Spain, the numbers are trending in the same direction, explained by the gradual lowering of interest rates by the European Central Bank (ECB), which has placed the Euribor, the benchmark index for mortgages, at its lowest level since the fall of 2022. This is the first consecutive month since June of last year. Given this scenario, banks predict that demand for mortgages will continue to rise.