Catalonia exercises right to buy 743 homes for €72m in social housing investment

The Catalan government this week exercised its right of first refusal and right of retraction to purchase 743 homes owned by the Divarian investment fund for a total of €72 million. 

The properties are spread across Catalonia, with 487 located in Barcelona and the metropolitan area. 

The homes will continue to be allocated to families who have been evicted and are part of the 'Reallotgem' program, which is promoted by the Catalan Housing Agency to acquire privately-owned homes in habitable condition, in order to expand the available social housing stock. 

Catalonia's Minister of Territory and Housing, Sílvia Paneque, said on Wednesday that the purchase was the largest made by the department through the first refusal and retraction mechanism. 

It covers half of the demand for housing under the 'Reallotgem' program. 

"Peace of mind" 

Paneque said the measure will grant "peace of mind" to the people living in the homes, as well as saving the government around €6 million a year. 

Previously, the government paid the difference between the market rate for rent and the amount charged to tenants – based on their income – through the social rent system. 

The minister explained that the government exercised their right of first refusal and retraction this week after learning that the Divarian fund was planning to sell the homes. 

Otherwise, the homes would have entered the free market. 

"The goal we pursue is for housing to be linked to a right, not to generate economic profit," the minister said. 

The purchase is part of Catalonia's plan to reach 50,000 social homes by 2030. 

The families living in the homes will pay social rent directly to the government, based on the income of each household. 

Most homes in Greater Barcelona 

Of the 743 homes acquired, 487 are located in Barcelona and the metropolitan area. 

The municipalities near the Catalan capital with the most homes are Terrassa (77), Barcelona (66), Sabadell (54), L'Hospitalet de Llobregat (51), and Badalona and Santa Coloma de Gramenet, each with 34 homes. 

In the Ponent region, western Catalonia, there are 59 homes, with 43 in Lleida. 

In the Camp de Tarragona region, there are 55 homes, with 24 in Tarragona and 21 in Reus. 

The Girona region has 54 homes, with 20 in Salt. 

In Central Catalonia, there are 43 homes, with 24 in Manresa, while in Penedès, there are 34 homes, with 6 in Vilafranca del Penedès. 

In the Terres de l'Ebre region, there are six homes, and the Alt Pirineu region has five homes.