Catalonia launches 125 million euro housing plan featuring shared ownership and eviction fund

Emergency fund to halt evictions

The Generalitat of Catalonia will establish an initial 25 million euro housing emergency fund to purchase residential properties directly from owners when vulnerable tenants face imminent eviction. Under the mechanism, the regional administration assumes ownership of the dwelling and converts the tenancy into a public lease with regulated, manageable rental terms. The initiative responds to nationwide mobilizations following high-profile evictions, including that of 87-year-old Maricarmen in Madrid. Regional authorities confirmed that the emergency fund will remain expandable and can incorporate financial contributions from municipal administrations, commercial banks, and insurance firms. Illa positioned the measure as an intervention to safeguard fundamental living conditions across the region.

The response to what we have seen these days is to act.

Public co-ownership for buyers over 40

To address affordability barriers for residents unable to cover mortgage down payments despite having stable incomes, the regional government introduced a 100 million euro shared-ownership program. Anchored in articles 547.1 and 547.10 of the Catalan Civil Code, the mechanism allows the administration to acquire a substantial equity stake alongside private buyers. For buyers aged between 40 and 55, the Generalitat will fund and hold 50% of the property, permitting the co-owner to reside in the home for 50 years. For individuals aged 56 and older, the administration will finance 60% of the purchase, granting a 40-year term of residential ownership.

Participants retain the legal right to sell their fractional share or transfer it to heirs during the statutory term. In the event of an external sale, the regional executive holds a preferential right of repurchase at market rates to retain the asset within the subsidized housing stock. Once the designated multi-decade period concludes, the resident can purchase the remaining public share or transfer the entire dwelling into the permanent public housing registry.

Financing support for young buyers

The regional administration also announced the expansion of its interest-free emancipation loan scheme for first-time buyers between the ages of 18 and 40. These loans provide up to 50,000 euros at 0% interest and carry no administrative fees, covering up to 20% of the purchase value for surface-right or bare-ownership properties. Beneficiaries are not required to begin loan repayments until they have completed all payments on their primary mortgage.

The initiative complements earlier regional commitments, including the ongoing 50,000-home construction plan, which has advanced to its second public land tender. Illa noted that long-term territorial planning must accommodate regional demographic projections, which estimate that Catalonia will approach 9 million residents by 2050.

Sector coordination and long-term targets

During the parliamentary debate, Illa called on legislative groups in Catalonia to support the central government's upcoming housing decrees in the Spanish Congress of Deputies. The measures scheduled for a vote include rental extension protections through 2029 and new indefinite lease provisions.

I ask for broad vision from all parliamentary groups to approve the decrees this Friday in the Congress of Deputies.

The Catalan government will convene rounds of consultations with municipal councils, financial institutions, and construction developers to accelerate housing delivery. Illa stated that the regional executive will urge banks to expand mortgage financing and ask town halls to release municipal land without hesitation. The administration also urged utility operators to prevent administrative and technical bottlenecks in connecting essential water, electricity, and gas services to newly developed residential plots.