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PROPERTY

Why Spain is looking to Vienna to fix its housing crisis

Spain is trailing behind the rest of the EU when it comes to social housing and has one of the lowest proportions of stock, so could replicating the Austrian capital's model be the solution?

vienna social housing
A statue in front of Karl-Marx-Hof, a community-owned apartment building in Vienna. Photo: Joe Klamar/AFP

According to figures from Spain’s Land and Housing Observatory, in 2020 just 2.5 percent of total constructions in Spain were for social housing, far lower than in countries such as Austria, where it was 24 percent, the Netherlands, with 30 percent, and Denmark at 20.9 percent. 

Spain is one of a small handful of EU countries that have surprisingly low social housing provisions. Spain ranks 18th in the EU overall and is joined at the bottom of the table by countries such as Romania (1.5 percent), Estonia (1.7 percent), Croatia (1.8 percent) and Portugal (2 percent).

Spain’s 2.5 percent figures are also much lower than the wider European average of 9.3 percent. In recent years, Spain has not even managed to complete 10,000 social housing units per year, compared to 60,000 a decade ago.

READ ALSO – EXPLAINED: How Spain plans to address its huge lack of social housing

Furthermore, public housing has become increasingly privatised in recent years, affecting most of the almost 2.5 million subsidised homes built since 1981, when the first plan was approved. In 2012, the construction of social housing plummeted and dropped from 50,000 homes annually to just 9,200 in 2022.

The Viennese model

For decades now, Vienna, the Austrian capital, has increased its stock of price-controlled social housing and has stood out for its housing policy.

Although there is social housing throughout the country, the majority of it is concentrated in the capital city. 

The Vienna City Council has become the biggest homeowner in Europe – around 60 percent of residents live in one of 220,000 properties subsidised by the public sector, and the city invests up to €600 million annually in affordable housing models.

By increasing social housing and limiting rent, the value of housing has also been limited and prices have been regulated. For example, in Vienna, rent is around €9 per m/2, according to the consulting firm Deloitte.

This figure is much lower than that of the rest of the European capitals, compared to London or Paris, for example, where the rental price per m/2 is around €30. In comparison, rent in Barcelona and Madrid is around €17 and €14 m/2 respectively.

The requirements to be able to access social housing in Vienna are also very broad. Basically, you need to be 17 years old or older, be registered Vienna and earn more than €43,000 net annually. Rent can also not represent more than 30 percent of your income.

READ ALSO: Spain needs to build 1.2 million affordable rental homes in a decade

How Spain is planning on replicating the Vienna model

Spain, like many EU countries, has begun to turn towards the Viennese model.

Madrid in particular hopes to increase the real estate stock by 70,000 homes in four years, of which up to 40,000 will be dedicated to social housing according to regional president Isabel Díaz Ayuso.

Like in Vienna, Madrid hopes to balance the real estate market naturally without limiting prices. For example, in Vienna where the private real estate stock has been regulated, 60 square meter homes can vary between €600 and €700 per month. This is almost impossible in Madrid and Barcelona, where a home with the same characteristics can exceed more than €1,000 per month.

The Spanish government recently approved a plan to allocate 50,000 ‘Sareb’ homes to bolster its dwindling social housing stock. La Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria or ‘Sareb’ was created eleven years ago to buy real estate assets from banks that went bankrupt during the 2008 financial crisis, and has been state-run since 2022.

Sánchez followed up on this 50,000 pledge by announcing the financing of a further 43,000 homes for social housing paid for with €4 billion of European funds.

“I want to announce that, in addition to the mobilisation of 50,000 Sareb homes, we are going to finance the development of another 43,000 new homes for social rent and rent at affordable prices,” the Prime Minister said.

He also criticised Spain’s “embarrassing” social housing stock compared to Europe, and reinforced his “commitment” to “move forward so that housing is a right and not a problem for the majority of citizens”. 

Having an extensive public housing stock allows prices to be lowered and ensures that there’s sufficient supply.

Christian Schantl, the head of the International Relations department of the public company Wiener Wohnen, the entity that manages public rentals in the city of Vienna, has advised Spain that to do this, they should not sell public housing under any circumstances.

In an interview with El País he said: “You cannot completely copy and paste the system, it would not work. One thing [the Spanish Government] should not do is sell its public housing. This is very important because many cities in Europe have made that mistake and are now facing serious problems. So that’s the first thing: never sell what you have. And then, there are some elements that are important to take into account, such as the financial situation, the necessary land, the legal framework and housing policies,” he continued.

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BARCELONA

The most affordable areas to live in and around Barcelona

It’s well known that Barcelona is one of the most expensive cities to live in Spain, and becoming more and more costly every year. There are however still areas that are much more affordable than others in 2024, writes Barcelona-based Esme Fox.

The most affordable areas to live in and around Barcelona

The average rental price in Barcelona now, according to property portal Idealista, is €21.1 / m2 which will set you back around €1,235 per month. And if you want to buy somewhere, you’ll be paying an average of €4,317 /m2.

So are there still any affordable areas left to live in around the city? The good news is that there definitely are, even within a 20-30 minute journey of the very centre.

The bad news, however, is that while some of them are nice spots away from the tourist zones, several of them are cheaper because they’re undesirable, unattractive or have social issues with relatively high crime rates.

We’ve listed 10 of the most affordable neighbourhoods in and around the city, what you can expect from them, which places are the best and which are best avoided.

Santa Coloma de Gramenet

Santa Coloma lies just to the northeast of Barcelona across the River Besòs and is actually considered a separate town, even though it’s on the Barcelona metro system and has very good connections with the city. It is in fact one of the cheapest places to live if you want to be within striking distance of Barcelona with the average price to buy just around €1.965 /m2 according to property giant Idealista and rent around 14,3 €/m2.

It’s a relatively safe area compared to many of the cheapest in and around Barcelona and has a very multicultural population, as well as close proximity to big superstores such as Ikea and DIY specialist Leroy Merlin.

Badalona

Badalona is another separate town that lies to the east of Barcelona and is probably one of the best options on the list. In recent years a wave of young professionals and families have moved here, having been priced out of Barcelona itself. The main advantage of living here is that you have an excellent beach, plus lots of attractive-looking houses and good restaurants surrounding it, at a fraction of the price for what you’d pay in Barceloneta or Poblenou. The best spots are near the beachfront, while the northern part of the neighbourhood doesn’t have the nicest feel to it. 

According to Idealista you’d pay an average of €14.4 / m2, which would be around €1,152 per month for an apartment of 80m2. And if you want to buy somewhere, it would set you back €2,162 / m2.

Sant Adrià de Besòs

Sant Adrià de Besòs is the neighbourhood which lies between Barcelona and Badalona, straddling the mouth of the River Besòs. The main benefit of living here is that you’re within easy distance of the river and the large green park that sits either side of it, perfect for cycling, rolling blading and numerous other sports. While some spots are ok to live, the main problem, however, is that you really have to know where to look and where to avoid.

For example, La Mina is part of Sant Adrià de Besòs, one of Barcelona’s most dangerous areas with a relatively high crime rate and lots of social issues such as drugs. And don’t be fooled by the fact that it’s a cheap area near the beach. There’s a reason for this, the beach located here lies right in front of the Les Tres Xemeneies (The Three Chimneys) an old factory and is often quite polluted and smells, so it’s not ideal for swimming. For rent the average price is around €14 / m2, while to buy you’ll pay around €2,343 / m2.

Ciutat Meridiana

Ciutat Meridiana is one of the least-well known neighbouhoods on the list because it lies right at the very northeastern corner of the city above Trinitat Vella and Torre Baró areas. Technically it’s part of the wider Nou Barris district and takes its name from the big Meridiana Avenue, one of the main roads that comes into the city from the north.

The area is definitely not the best looking, with mainly 80s-style town blocks and council-type estates, but it’s not particularly dodgy or dangerous. Live here and you’ll be treated to excellent city views, however, plus be located close to the green Collserola Natural Park, a great hiking spot.

Many of the most affordable areas are in the northeast of the city near the Collserola Natural Park. Photo: Carlos Pernalete Tua / Pexels
 

El Bon Pastor

Bon Pastor extends from the village-like barrio of Sant Andreu de Palomar all the way to the River Besòs and the very edge of the city. It’s home to places such as the Westfield Maquinista shopping mall, one of the best in Barcelona, as well as many car showrooms and lots of big warehouses with a kind of industrial vibe. It’s a relatively safe area, even though it’s not one of the most attractive. The average price to rent an apartment here costs around €601.40 and to buy it’s €2.312 / m2.  

Trinitat Nova

La Trinitat Nova is located in the larger district of Nou Barris in the northeastern corner of the city. It sits to the left of the big Avinguda Meridiana and borders the Collserola Natural Park along the western edge. It’s not particularly a dodgy place to live, but it doesn’t best vibe and the edge along the Collserola does have a small shanty town. Its advantages, however, are that it’s well connected to the city. Taking the yellow line, you can be in the centre of Barcelona in just over 20 minutes. Rent costs an average of €662,3 per month and to buy you’ll pay €2,113 / m2.

Trinitat Vella

La Trinitat Vella sits to the right of Trinitat Nova, directly above the neighbourhood of Sant Andreu de Palomar. It has a similar feel to Trinitat Nova too, but does have the benefit of being located around the large Trinitat Vella park. Built around the top of a hill, it features a large lake, as well as grassy meadows and forested areas. There are also basketball courts and even a model racing car track. The average rental price here costs €674,7 per month and to buy you’ll pay around €2,386 / m2.

Roquetes

Located in the larger district of Nou Barris, Roquetes lies to the west of Trinitat Nova, along the edge of the Collserola. It’s characterised by steep streets and high-rise tower blocks. Again like some of the others above it’s not a pretty neighbourhood with a lot going on, but it’s not particularly dodgy or dangerous either. It’s ideal for those who love hiking, being so close to the natural park and many of its best trails, so you won’t even need to take public transport before you’re in the heart of nature. To rent here will cost you around €728.70 and the average cost to buy is €2,113 / m2.

El Carmel 

El Carmel lies more to the northern central part of the city within the municipality of Horta-Guinardó, stretching north from Gaudí’s Parc Güell and Parc del Guinardó up to Horta. It too is characterised by very steep streets and has a chilled residential atmosphere. While the centre of the neighbourhood is nothing to write home about, the southern part lies within walking distance to two of the city’s best parks and the northern part is situated close to the lovely, leafy village-like barrio of Horta, great for families. Living here will set you back an average of €769 to rent and €3,170 / m2 to buy. 

Verdun

Verdun is a small area compared to many of the others and sits right below Roquetas until it meets Via Júlia. It’s mostly residential and is also relatively safe. The nicest part is centred around Via Júlia which is like the area’s own Rambla, lined with many shops and cafes. Renting here will cost you an average of €770 and €2,386 / m2 to buy, being located within Nou Barris.

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