Protected housing in Spain is a type of housing built in accordance with design and quality regulations, in accordance with the established administrative procedure that declares them as protected, and for whose construction and/or acquisition the public administration provides various types of aid. , establishing as the most important limits the price of the home and the income of the buyers or tenants. There are two main categories of subsidized housing: officially subsidized housing (VPO) and public subsidized housing (VPP). VPOs are homes whose owners must meet certain requirements and have advantages such as subsidized loans, aid or subsidies. Within this category are public official protection housing (VPOPP), whose promoter is some administration or public body, and privately promoted official protection housing, also called price-rated housing (VPT). VPPs, on the other hand, are those in which the administration's work is limited to facilitating either its construction or its marketing. In this case there are basic public protection housing (VPPB) and limited price public protection housing (VPPL).
Regarding the profitability of subsidized housing in Spain, the real estate market has faced complications in making projects profitable due to the price modules set by the regional administrations that do not reflect the reality of a sector that has suffered in recent months. an increase in construction and financing costs. It is extremely difficult to make a protected housing development profitable, both for sale and for rent. The profitability of this type of product is very tight if the risk assumed is taken into account. The modules that have not been updated, the specific regulations on protected housing and greater intervention in the process by the administrations, together with a situation of high costs, make it very complex to implement them, although the demand is very large.
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