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Public housing in Spain - VPO

For those who choose to invest in real estate in Spain, certainly in entrepreneurship, it is important that they know and know what VPO means. The concept loosely translates to "officially protected apartments" in Spanish. Viviendas de Protección Oficial is also known in Israel as public protected housing. The prices of These apartments are limited by the government and allocated to people with low income so that they can purchase or rent them. VPO apartments are only available to people with certain conditions, such as low income, several minor children, or a special medical condition.

Why is it important for investors to know the public housing sector?

Many projects we are looking at are subject to regulations related to VPO; therefore, when calculating the profit, the price at which apartments will be sold must be considered in advance. The disadvantage is the low price compared to the market price: the advantage is that these apartments can be seen as sold in advance and will not have to be marketed on the free market. The government will take care of sending you buyers.

The Spanish government encourages

The Spanish government is encouraging the construction of VPO apartments to help alleviate the housing crisis in Spain. The housing crisis in Spain, as noted in other articles, is due to ever-increasing price increases, making it difficult for low-income people to purchase or rent an apartment. As a democratic-socialist country, public housing in Spain is an important part of the country's housing policy. Unlike most countries in the European Union, public housing in Spain focuses mainly on ownership and not renting.

Who wins public housing in Spain, and could it harm the quality of the project?

In Spain, every citizen has a right to housing; therefore, the government helps finance the purchase, renovation as needed, and low-interest loans. According to the figure published in 2020, Spain is placed far below in the amount of public real estate assets in the country. When in the Netherlands, 34% of housing is public, in England, 16.7%, in the European Union 7.5% on average, in Israel, 2% and in Spain, only 1.1%. This is why the Spanish government is working hard to Increase the scope of public housing. See article (link)

Investing in an apartment in Spain, real estate in Spain, Barcelona, Madrid
Investing in an apartment in Spain, real estate in Spain, Barcelona, Madrid


Public housing financing:

Funding for sheltered housing comes mainly from Spain's national program for housing, with additional support from regional programs of the various provinces in Spain. The state signs agreements with the banks or other financing bodies, and it undertakes to provide loans on favorable terms.


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