The Vienna model for affordable housing is coming to Spain

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affordable housing

At a time when rental prices in Spain are skyrocketing, the non-profit organisation Provivienda is introducing an innovative solution in Spain: the Vienna Model. This model, inspired by the successful approach of the Austrian capital, promises affordable housing through so-called Housing Associations.

These organisations, operating not-for-profit or with limited profit, take the lead in building, renovating and managing affordable and social housing. By working with public authorities, they aim to facilitate access to housing. “NGOs can change the rental paradigm in Spain and provide a solution to high housing prices,” said Provivienda.

The unique thing about this approach is that any profits are reinvested in the community. This, together with the fact that these organisations do not strive for maximum profitability, keeps the Vienna model away from the speculative processes that characterise the real estate sector.

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A personal success story

Sixto, a single father from Getafe, is one of many who have benefited from this initiative. After losing his house due to the real estate bubble, and a period in which he and his daughter lived in small rooms, he found affordable housing through Provivienda. “We now live in an apartment with three bedrooms and two bathrooms for €850 per month, 20% below market price,” he shares.

Growing need for affordable housing

The current situation of affordable and social housing in Spain is far from ideal. With only 2.8% of homes below market price – far below the European average of 9.3% – the need is great. According to the Fundación Alternativas, approximately 400,000 people are on the waiting list for social housing. In addition, 5.5 million households suffer from residential exclusion. “Four in ten households are impoverished by rent,” Provivienda emphasises, which underlines the urgency of the problem.

Also read: The 20 most expensive areas to rent a property

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