Barcelona Government Links Housing Densification to Public Return on Capital Gains

The city's executive explores new avenues to increase housing supply, conditioning them on social benefits.

Generic image of two hands shaking over a desk, symbolizing a political agreement or debate.
IA

Generic image of two hands shaking over a desk, symbolizing a political agreement or debate.

The Barcelona Government, led by Jaume Collboni, has initiated a debate on housing densification in the city, conditioning the increase in supply on a public return from the capital gains generated.

This initiative is part of the desire to “intensify” Barcelona through new instruments that allow for an increase in the number of homes. Among the options being explored are facilitating rooftop extensions, transforming ground-floor commercial spaces, and dividing large apartments.

"We must reflect on this, which is not easy, before deciding on intensification measures. It is an obligation for the public sector not to generate potential capital gains without a public return."

a deputy mayor of Barcelona
The municipal proposal seeks to address the housing crisis from a financial perspective, ensuring that the creation of new homes not only benefits the private sector. It is proposed that a portion of the economic capital gains generated by densification be allocated to social housing policies.
One example cited is the division of large apartments in the Eixample district. If an apartment of 120 or 130 square meters is divided into two, its patrimonial value increases. The idea is that a part of this value increase could be used to finance protected housing.
The city council also considers the possibility of incentivizing the construction of social housing for young people or the elderly on private facilities, such as health centers, educational institutions, or geriatric residences, provided that the coexistence of uses and compliance with urban planning regulations are guaranteed.
Furthermore, the need to attract “patient” investment funds and increase delegated promotion is foreseen, where private capital develops and manages social housing for middle classes on plots ceded for long terms. The capitalization of the social sector and the cooperativization of housing blocks are also being considered.