Barcelona buys 14-flat building for €6.1m to expand affordable housing

Barcelona City Council has purchased a 14-flat building in L'Antiga Esquerra de l'Eixample for €6.1 million, using its pre-emptive right to expand the city's affordable housing stock.

Jordi Valls, Deputy Mayor for Housing, announced the acquisition on Friday at a municipal plenary session. The property, located at number 161 on Carrer de la Diputació, includes the purchase cost of €4.6 million and an estimated €1.5 million for necessary renovations.

Officials said the total price paid is 21% below the market value. This detail comes after previous acquisitions by the city council faced criticism for perceived overspending. Of the 14 flats, 13 are currently empty, with one remaining under an old rental contract.

Expanding Affordable Housing Options

The building features a ground floor, mezzanine, main floor, and three additional floors, with a total constructed area of 1,339 square metres. It comprises flats, communal areas, and two commercial premises. The 13 available flats will be allocated to individuals registered with Barcelona's Official Protected Housing Applicants Register.

Valls defended the city's pre-emptive right, known as 'tanteo y retracto', as a "strategic policy to expand the affordable housing stock". He added that this measure helps combat gentrification, which displaces residents due to rising property prices.

New Ordinance Strengthens Acquisition Powers

Barcelona City Council approved a new pre-emptive right ordinance in December. This tool has allowed the city to acquire 315 buildings since its implementation. The ordinance states that when purchasing an entire building, the price must not exceed the average sales price in the neighbourhood, after deducting any necessary rehabilitation costs.

The regulation also permits the city council to transfer acquired properties to other public housing promotion entities linked to the administration, legal occupants of the property, or private and non-profit developers and housing cooperatives. The ordinance also allows for joint purchases between the city council and these entities.