Spain has allocated €7 billion to housing. For foreign buyers on the Costa Blanca, this changes almost nothing — and here's why.

On April 22, Pedro Sánchez's cabinet approved a €7 billion housing package — the largest state commitment to affordable housing in recent decades. The program will triple budget investments in social construction over a four-year horizon, subsidize young renters, and close a historical loophole that allowed social housing to be transferred to the private sector a few years after completion.

The political logic is transparent. Housing has been the number one issue for Spanish voters for three consecutive years. According to Eurostat, Spanish home prices rose nearly 13% year-on-year at the end of 2025 — one of the highest rates in the EU. Sánchez calls the situation a "full-blown crisis" and is promoting this package partly as an electoral resource ahead of the 2027 elections.

For foreign property buyers on the Costa Blanca, in Alicante or Torrevieja, the answer to "what will this change" is short: almost nothing in the short term. The state program targets urban rentals — Barcelona, Madrid, Valencia, Seville — and a segment where foreign buyers are virtually absent. The coastal secondary market, where the vast majority of foreign transactions are concentrated, follows its own laws of supply shortages and sustainable demand.

According to Spanish notaries, foreign buyers accounted for about 20% of all real estate transactions in Spain in 2025. In the province of Málaga, that figure exceeds 42%. In Alicante, where most of the properties on our portal are located, the share of foreign buyers is also significantly above the national average. Prices in these locations have risen 7–13% over the past year, and analysts at CBRE and BBVA Research do not expect a significant slowdown either in 2026 or in 2027 — since new state construction will not reach the market until 2028–2029 at the earliest.

The only meaningful indirect effect: the program strengthens Spain's position as a country whose government takes the housing crisis seriously, which supports the overall investment attractiveness of the market in the eyes of international funds. According to CBRE Iberia, investment volumes in Spanish real estate in 2026 are forecast in the range of €19–21 billion.

Property in Spain — Alicante, Torrevieja, Benidorm: discount-house.com/spain