Spain approves EUR 201m to subsidise private builders of 2,500 affordable rental homes under CASA 47 contracts

Spain's Council of Ministers approved a royal decree on 27 October 2026 to subsidise works-concession contracts that the state housing entity CASA 47 will tender for affordable rental homes. The government puts the subsidy at EUR 201m for about 2,500 homes, built by private firms on land that is already urbanised. Housing minister Isabel Rodríguez called it the fourth strand of CASA 47's work, after recovering state property, tendering direct construction and buying existing homes. Contracts run for 14 years and can be extended in seven-year steps to 75 years. Rent is capped at 30% of the tenant household's income. Homes that would need a subsidy above 60% go directly through CASA 47 instead. The royal decree had not been published in the BOE as of 1 November.

The design fixes affordability by contract for the life of the building, and sets an explicit point at which direct public construction replaces subsidised private building. Rodríguez said the public conditions of these homes are guaranteed throughout their lifespan. The wider legal frame is Royal Decree-law 29/2026 of 6 October, which defines affordable housing against the municipality's median household income and was still awaiting validation by Congress. The open questions are whether 75-year commitments survive changes of government, and how the cost per home compares with building directly.