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Real estate: the global problem of expensive housing

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Real estate: the global problem of expensive housing

The problem of expensive housing is clearly not only Greek. “The average rent in our city in 2014 was 700 euros, and today it is 1000”, refers to “K” by video call about Edward Cabre Romanpublic relations officer of the Barcelona Housing Department.

In 2016, the municipality of Barcelona decided to take action to offer housing solutions to its residents. “For many decades, at the national level, homeownership was supported residenceat the same time, the state financially supported the buildings, which were then sold at low prices, it was a social housing program,” he describes, “the houses were resold at good prices for 20 years, but then the owners had the right to give them away at commercial prices.”

Since then, only 2% of all housing remains social housing. The 10-year plan that Barcelona is currently developing takes a different approach, focusing on affordable rental housing and land provision in cooperative housing models.

Cheaper housing

“We were able to offer 11,500 homes at below market prices.” They are issued to persons or families with limited financial resources (including an annual individual income of up to 50,000 euros and an annual family income of up to 60,000 euros) in the amount of 500 to 700 euros, as well as to vulnerable social groups (the homeless, victims of domestic violence and refugees). with zero or up to 200 euros in return. “The first category can stay until they are able to pay 1,000 euros in rent, even for their entire life, the second has a two-year limit.”

The houses mentioned are overwhelmingly, about 10,000, owned by the municipality, while the rest are private houses “which they have renovated with our own financial support and are therefore obliged to rent them at low prices.” The percentage of the population that cannot meet the market prices for real estate is about 75% of the total. “Therefore, I know that many are still unhappy,” says Mr. Roman.

“At the same time, we run programs only for young people or the elderly, and we also support joint projects (including housing where tenant management will be shared or populated by groups with a common culture); as a municipality, we provide them with land from 75 to 99 years old so that they can build their complexes.” To date, six such projects have been completed, with 22 more under construction.

Role of Airbnb

Prices in Barcelona and other major cities in Spain were not what they were before the short-term rental boom. “In 2017, there were 9,500 legal short-term rentals, and 8,000 illegal ones,” says one of the roots of the “evil”. In 2017, a new law was passed to regulate short-term rentals. “Renting became possible only with the appropriate permission, we stopped issuing permits in the city center, but only in the suburbs,” he describes, “at the same time, we have echelons on duty that check houses that are suspected of being rented. leaving for a short time without permission. And only the threat of imposing an appropriate fine, according to Mr. Roman, is sufficient for the owners to “come to their senses.” Today, legitimate Airbnbs range from 9 to 10,000 people. “Our next target is non-Hispanic rentals for less than a year,” he notes. The digital nomads gave Roman a headache.

“We don’t have data because the lease is based on national law, not local law,” he clarifies. “These leases don’t have a ceiling, which causes market turbulence.”

Cooperation with individuals

There is currently a debate in the country on how to regulate the housing market in Spain. “We are convinced that we must use all the tools and offer citizens alternatives in accordance with their needs,” he emphasizes. “We plan to create an organization in which we will own 50%, and the remaining 50% will be private investors, through which we will offer houses at affordable prices”, he concludes, “the profit for investors will not be big, because of course, but it will be firm and guaranteed.”

Author: Joanna Photiadis

Source: Kathimerini

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