The Basque Country government announced that it will launch a public tender in December, opening the door for private investors to join its new Housing Social Fund (FSV). This €2 billion initiative is designed to deliver 10 000 affordable homes over the next decade, forming a core component of the 2025-2027 Housing Master Plan.
The fund aims to mobilise up to €2 billion to build 10 000 homes through 75-year public-land concessions, as outlined in the regional Housing Master Plan 2025-2027.
How the fund works
The FSV will operate as a single, unified vehicle rather than as a competitive bidding process for individual plots. Private entities, including financial institutions, pension funds, and foundations, will hold a substantial share, while the Basque government retains a minority interest. The remaining 70 percent of financing will be sourced from debt providers such as the European Investment Bank (BEI), the Official Credit Institute (ICO), and local pension funds.
This structure is intended to give investors a clear, long-term stake in the programme while ensuring that public resources remain protected. By avoiding fragmented auctions, the scheme aims to reduce transaction costs and speed up project delivery.
Denis Itxaso, the regional housing minister, framed the fund as a return to the Basque model of blending local savings with collective ambition. “This is patient capital for an urgent problem,” he said, comparing it to the region’s historic cooperative and savings-bank traditions.
Before the December tender, officials will hold private meetings with potential investors to explain the fund’s structure in detail. Itxaso emphasized that the government was not seeking a symbolic gesture but a sustained financial partnership. “We’re offering an investment, not a handout,” he added.
First phase: 2,065 homes in nine cities
The fund’s initial phase will develop 2 065 rental units across nine municipalities, with a focus on Vitoria-Gasteiz and Bilbao, along with smaller cities such as Bermeo, Errenteria, and Portugalete. A €452 million investment will target properties priced between €8 and €10 per square metre, ensuring rents stay below the 30 percent income threshold for eligible households.
Eligible tenants will earn between €25 000 and €65 000 annually, a range that covers roughly 45 percent of Basque households, according to regional data, and are registered in the Etxebide system (the Basque housing registry). All units must meet energy-efficiency, accessibility, and quality standards, and the allocation process will be transparent.