Regional government unveils major housing investment alongside €25 million scheme to unlock more land for affordable development
The Andalusian regional government has announced plans to allocate more than €1 billion to housing, youth and spatial planning in its 2027 budget, as the region looks to increase housing supply and accelerate new development.
Regional president Juanma Moreno also announced a new €25 million grant scheme for urban development works, designed to help municipalities and developers meet infrastructure costs associated with bringing new land forward for construction.
The funding is intended to improve the financial viability of housing developments while making more land available for social and affordable housing.
Unlocking More Land for Development
One of the biggest challenges facing Andalucía’s housing market is ensuring sufficient developable land is available to meet growing demand.
The newly announced funding will contribute towards infrastructure and urbanisation works required before housing can be constructed, potentially helping previously unviable sites move forward.
According to the regional government, the objective is to reduce some of the barriers preventing new housing supply from reaching the market.
Faster Planning and Building Procedures
The announcement follows wider housing reforms introduced by the Junta de Andalucía aimed at simplifying planning and construction procedures.
Moreno highlighted Andalucía’s housing legislation as part of the regional government’s strategy to streamline building procedures, release more land for development and increase housing availability.
Housing has become one of the most significant issues facing Spain, particularly in high-demand markets where supply has struggled to keep pace with population growth and buyer and rental demand.
What Could This Mean for Andalucía’s Property Market?
For real estate professionals, developers and investors, increased investment in infrastructure and the release of additional developable land could have a significant long-term impact.
More viable development land could support increased new-build activity, while faster administrative procedures could help reduce the time required to bring projects to market.
For markets across Andalucía — including the Costa del Sol — measures that successfully increase housing supply will be particularly important as demand continues to place pressure on both purchase and rental markets.
The 2027 housing allocation and €25 million urban development programme represent another step towards addressing that supply challenge and supporting the next generation of residential development across the region.
Source: SUR in English / Europa Press, 22 October 2026
