Housing scandal in Alicante: prominent PP activists received cheaper apartments

A major scandal is unfolding in the Spanish city of Alicante concerning irregularities in the distribution of protected housing stock. The epicenter of the scandal is the modern Les Naus complex, located in the exclusive coastal district of Playa de San Juan. According to media reports, some apartments ended up in the hands of people connected to the local structures of the ruling People's Party (PP), raising suspicions of favoritism and nepotism. One of the key figures in the scandal is the family of the city's mayor, Luis Barcala. According to a journalistic investigation, his wife acquired a social housing apartment in 2006 under exceptionally favorable conditions. The price was regulated for only 10 years from the final approval of the building in 2005. From 2015, she could freely set the rent, and from 2025 – after the full protection period expires – she gained the right to sell the property at market price, estimated to be up to three times the initial value. This model, described as a "round deal," has become a reference point for critics. The protected housing system (VPO/VPP) in Spain has a long history, dating back to the post-war period, and its aim was to combat the housing deficit and provide access to homeownership for middle- and low-income groups. Over the last decades, the program has been reformed multiple times, and its implementation at the regional level has often been a source of local controversy and allegations of irregularities. The scandal has triggered serious political consequences. A cascade of resignations has occurred at the Alicante city hall, which is governed by the PP. The regional government of Valencia, the Generalitat, has taken corrective action. The Vice President of the government and Minister of Housing, Susana Camarero, informed that the administration is reviewing "all cases" related to the Les Naus development and is transferring to the court "those matters" that do not align. „seguimos revisando 'todos los expedientes' de las viviendas de protección pública (VPP) de la promoción Les Naus [...] y que está trasladando al juzgado 'aquellas cuestiones' que no casan” (we are continuing to review 'all the files' related to the protected public housing (VPP) of the Les Naus development [...] and that we are transferring to the court 'those matters' that do not align) — Susana Camarero The scandal has also caused social tensions among the residents of the complex themselves. Some of them, who – in their own assessment – acquired their apartments legally, express frustration and fatigue with the constant media attention, feeling unjustly dragged into the scandal. One resident appealed to journalists: "Let us live in peace, we've had enough of this."