Andalusia approves a package of urban planning measures to promote new affordable social housing and protect residential use
Decree-Law 1/2025, of 24 February, on Urgent Housing Measures, published in the Andalusian Official Gazette on 3 March 2025, introduces interesting incentives such as the possibility of requesting a change of use without amending the urban planning instruments to develop social housing on plots of land intended for offices, tourist accommodation or private endowment, or the increase in the density and buildability of assets intended for social housing.
Although Decree-Law 1/2025 is already in force, the application of these specific incentives is subject to the decision of the local councils which have until 3 March 2026 to apply them.
Simplifying the change of use for social housing - a new trend?
Andalusia is not the first Spanish Autonomous Community to facilitate the development of social housing on plots of land previously intended for other uses.
In the middle of last year, the Community of Madrid approved a regulatory framework that allows the development of social housing units (as an alternative use) on plots of land and even existing buildings already developed for tertiary office use. The period for applying for licences for this change of use has already started in some municipalities such as the City of Madrid (vid. Madrid approves the conditions for the temporary change of use from tertiary offices use to social housing).
Likewise, in the Canary Islands Decree Law 1/2024 of 19 February on Urgent Housing Measures introduced provisions to simplify the change of use on unbuilt plots of land for tourist use, provided that at least one third of the new residential units were destined for the construction of social housing, and enabled the reclassification of premises and buildings to residential use, subject to the condition that 50% of the excess over planning are dedicated for social housing.
These measures, as opposed to more restrictive options such as rent controls, aim to address the current housing problem in Spain by providing incentives to developers to urgently increase the offer of affordable housing and could be extended to the rest of the most critical Autonomous Communities with the State Law 12/2023 on the Right to Housing.
What possibilities does Andalusia offer for the development of social housing on plots of land intended for other uses?
The recently published Decree-Law 1/2025 allows to apply for the alternative use of "residential social housing" in the following types of real estate assets:
(a) plots of land and buildings classified in urban planning instruments as having the use, either detailed or alternative, of office or tourist accommodation; and
(b) private endowment plots (parcelas dotacionales privadas) that have not been assigned a specific use or that are classified with the general use of public and social interest, if the social housing is intended permanently for lease.
The residential units that are developed on ceded private plots of land under this measure will permanently maintain their public protection regime.
These developments will not require the amendment of urban planning instruments if a series of requirements explained below are met.
What requirements are imposed to allow the change of use without amending the planning instruments?
Plot conditions: The plot shall:
(a) be suitable for the construction of a residential building;
(b) have the status of plot on urban land or be built at the same time as the urbanisation works in the area where an urban transformation action is being carried out;
(c) be located in a zone of global residential use; and
(d) be covered by a detailed ordinance (ordenación pormenorizada) that legitimises the approved execution activity.
Conditions of use: The alternative use of social housing must be implemented on the entire plot or building, without prejudice to the regime of compatible uses provided for in the urban planning instruments, which may not exceed 20% of the buildable area allocated to residential use.
The authorised alternative use must be maintained for the legal period of protection of the residential units established by the applicable regulations, with the exception of rented residential units on ceded private plots of land (parcelas dotacionales), which will maintain the protection permanently.
The conditions under which the use of social housing is authorised must be registered in the Land Registry in accordance with the State legislation.
Building conditions: The buildability and the other parameters of the detailed planning will be those established for the plot by the urban planning instruments in force.
The maximum residential density will be the result of dividing the buildability for residential use by 70. However, if it is necessary to modify the conditions of occupation, position or height of the building in order to build the residential units, it will be necessary to carry out a detailed study, as provided for in the urban planning legislation, in order to establish a distribution of the building volume that guarantees the integration of the project into the urban environment.
Urban development regime: For the purposes of the Andalusian regime of transformation actions for urban improvement, it will be considered that the alternative use does not imply a change in the urban development use assigned to the plot.
In addition, the project submitted to apply for an urban licence must reserve the local endowments or networks for basic community facilities and for open spaces and green areas that are demanded on the basis of the increase in population, or replace this obligation with one of the alternative forms of compliance with the obligations for the promotion of urban transformation actions on urban land provided for in Andalusian legislation (i.e. monetary payment substitution).
If the implementation of the alternative use requires the development of public endowments, specific adjustments to the road network or the need to complete the existing development, the necessary works will be included in the project submitted to apply for a licence and the cost will be borne by the licence applicant.
When can change of use licences be applied for, and until when?
This is not yet known. The application of this measure requires the agreement of each competent municipal body. As in Madrid, municipalities in Andalusia are free to opt in or out of the new regime and have until 3 March 2026 to adopt the agreement. The municipal resolution to be adopted may also provide for the full or partial application of the measure in all or part of the municipality's urban areas and set additional conditions to those set out in of Decree-Law 1/2025.
Once a municipality opts to apply the new regime of change of use, developers will have two years to apply for a licence for social housing buildings and three years to complete the works once the licence is granted, all subject to the specific conditions that may be approved at municipal level.
What possibilities does Andalusia offer to increase the density and buildability of assets intended for social housing?
On existing plots and buildings classified as residential use for free housing by the urban planning instruments, the density of housing may be increased by 20%, provided that the resulting building is entirely for housing subject to a protection regime.
The buildable area may be increased by the percentage necessary to carry out the greater number of residential units, provided that the urban development use of the plot is not exceeded.
On undeveloped plots for social housing, the housing density may be increased by 20% and the buildable area by 10%.
These provisions, provided that a number of conditions explained below are met, do not require the modification of urban planning instruments, nor do they imply the application of the regime of the actions for urban transformation.
What conditions need to be met to increase the density and buildability of assets without amending the planning instruments?
Plot conditions: The plot must have the status of a plot on urban land or be built at the same time as the urbanisation works in the area where an urban transformation action is being carried out.
Conditions of use: The use of social housing must be implemented on the entire plot or building, without prejudice to the regime of compatible uses provided for in the urban planning instruments, which may not exceed 20% of the are intended for housing.
The conditions under which the use of social housing is authorised must be registered in the Land Registry in accordance with the State legislation.
Building conditions: The rest of the detailed planning parameters will be as established by the urban planning instruments in force.
However, if it is necessary to modify the conditions of occupation, position or height of the building in order to achieve the increase in density and buildability, a detailed study must be carried out in accordance with urban planning regulations, establishing a distribution of the buildable volume that guarantees the integration of the project into the urban environment.
When can the aforementioned increases in density and buildability be applied for, and until when?
As before, this is not known yet. The effective application of this measure is subject to an agreement at the municipal level, which will determine its territorial scope, whether the implementation is total or partial, and the existence of additional conditions. This agreement, which can be adopted until 3 March 2026, will open the two-year period for licence applications, with works to be completed within three years of the licence being granted.
What other measures does Decree-Law 1/2025 provide for?
Apart from the above measures, Decree-Law 1/2025 includes some other provisions that are intended to last over time and that may be of interest to private developers of social housing:
(a) Compatible uses on land classified as community facilities.
The planning instruments may establish as a compatible use in the plots of basic community facilities, the use of housing or endowment accommodation (alojamiento dotacional) for the purpose of meeting the temporary needs of groups with particular difficulties in accessing housing, under lease agreements or any other form of temporary occupation of a rotating nature. The residential units or accommodations will form part of the public housing endowment, without prejudice to its execution and management through public-private cooperation formulas.
In vacant plots and buildings located in areas of general residential use, classified by the planning instruments in force as public community facilities, which have not been assigned a specific use or which are classified with the generic use of public and social interest, the alternative detailed use of housing or endowment accommodation with the characteristics of the previous paragraph may be authorised, without the need to amend the planning instrument in force. The assignment of this use will require the adoption of an agreement at municipal level, assessing the opportunity of allocating the plot in its entirety to residential use or coexisting with other community facilities.
The resulting residential units, as part of the network of basic community facilities, will not be taken into account for the purposes of the regime of urban transformation actions or in the maximum number of residential units that would have been assigned by the urban planning to the area or sector in which the plot is included.
(b) Shortened procedure for the awarding of social housing.
An abbreviated procedure is established for the selection of successful bidders for social housing carried out under the above-mentioned temporary measures for change of use and increase of density and buildability mentioned above.
Both public and private developers may make use of this procedure by notifying the relevant Town Hall or a public body dependent on it of their intention to do so.
It is also provided that, at the request of the developer, the Town Hall may wave the ordinary award procedure for duly justified reasons of extraordinary necessity, provided that the principles of publicity, transparency and public competition are guaranteed. Similarly, other selection procedures may be established by regulatory development, depending on the characteristics of the accommodation and in compliance with the principles of publicity, transparency and public competition.
(c) Pool of land for affordable housing.
A pool of land for affordable housing is created in Andalusia, which will be made up of available public or private plots of land intended for social housing by urban planning instruments, endowment plots for facilities that could be used for housing or endowment accommodation, plots belonging to public land states and other publicly owned plots that can be used for social housing.
(d) Developments of social and affordable housing for lease financed by EU Next Generation reimbursable funds.
Developers wishing to apply for reimbursable funds under Investment C02.I07 "Social Housing Promotion Facility" of the Recovery, Transformation and Resilience Plan financed by European Union - Next Generation funds, must request ex-ante validation from the Directorate General responsible for housing and undertake to keep the Autonomous Community informed of their development.
(e) Assignment of housing projects to the Project Acceleration Unit.
The Project Acceleration Unit is a specific public department responsible for the preferential and accelerated processing of urban development procedures considered to be of strategic interest to the Autonomous Community of Andalusia.
Until now, housing projects have been excluded from its scope. However, by virtue of Decree-Law 1/2025, the development of the instruments for the detailed planning, management and execution of urban transformation actions for new urban developments of global residential use can be assigned to this Unit if they include, among their specifications, a land reserve for at least 250 social housing units and a timetable that guarantees that their construction will begin within a period of less than five years.
Other housing initiatives of more than 500 residential units, which require urban measures to develop the residential sectors in which they are located, and which include among their specifications the legal reserve of social housing, as well as a schedule to start construction of 50% of them in a period of less than five years, may also be allocated, provided that they are considered environmentally sustainable, as they contribute significantly to at least one of the six environmental objectives defined in Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment and do not cause significant harm (DNSH) to any of the other five.
The application may be made by the entities that undertake the development of the action and must be accompanied by the municipal agreement that initiates the processing of the urban planning instrument and the agreement that declares as urgent the processing of all the procedures to be led by the Town Hall in its area of competence until the completion of the works and the awarding of the social housing, based on the high demand for housing in the municipality and the impact of the action on the same.
(f) The requirements for eligibility for social housing are moderated.
Decree-Law 1/2025 also made the requirements for eligibility for social housing more flexible. It establishes that the various protected housing and accommodation units will be allocated to family units whose annual income does not exceed the following limits:
(i) 3.00 times the Public Indicator of Multiple Effect Income (IPREM) in the case of the special regime of social housing (previously, 2.50 times);
(ii) 5.5 times the IPREM for general social housing (previously 4.00 times); and
(iii) 7.00 times the IPREM for limited-price social housing (previously 5.50 times).
The official monthly IPREM in force for the year 2025 is €600 according to Law 31/2022, of 23 December, on the General State Budget for the year 2023.
(g) Increased territorial coefficients for the determination of maximum prices.
Decree-Law 1/2025 increases the territorial coefficients for calculating of the social housing weighted module (módulo ponderado) and the maximum legal price of social housing.
The territories are now divided into two groups (instead of the previous four):
(i) Group 1 (coefficient 1.50): Almería, El Ejido, Mojácar, Roquetas de Mar, Cádiz, Algeciras, Chiclana de la Frontera, Jerez, La Línea de la Concepción, Los Barrios, Puerto de Santa María (El), Puerto Real, Rota, San Fernando, San Roque, Tarifa, Córdoba, Granada, Albolote, Alhendín, Almuñécar, Armilla, Atarfe, Cájar, Cenes de la Vega, Churriana de la Vega, Huétor Vega, Jun, La Zubia, Maracena, Motril, Ogíjares, Peligros, Pulianas, Santa Fe, Huelva, Aljaraque, Isla Cristina, Moguer, Palos de la Frontera, San Juan del Puerto,- Jaén, Baeza, Cazorla, La Guardia de Jaén, Mancha Real, Mengíbar, Torredelcampo, Úbeda, Los Villares, Málaga, Alhaurín de la Torre, Antequera, Benalmádena, Cártama, Estepona, Fuengirola, Marbella, Mijas, Nerja, Rincón de la Victoria, Torremolinos, Vélez-Málaga, Sevilla, Alcalá de Guadaíra, Bormujos, Camas, Carmona, Dos Hermanas, Écija, La Rinconada, Los Palacios y Villafranca, Mairena del Alcor, Mairena del Aljarafe, Morón, San Juan de Aznalfarache, Utrera, El Viso del Alcor and Tomares.
(ii) Group 2 (coefficient 1.30): The rest of the municipalities.
The basic module for determining the reference price (which is multiplied by the above coefficients) is currently set at €870 per useful square metre of housing.
(h) Extension of delivery periods.
The normal delivery period of residential units is five months from the date of final qualification or from the date of sale, lease or award if this is subsequent to qualification (previously the normal delivery period was three months). As before, this period may be extended by the relevant Territorial Delegation.
The time limit for granting the deed of sale is also increased from three to five months.
(i) Replacement of the responsible declaration system by the validation of the agreements (visado).
According to the preamble of Decree-Law 1/2025, the previous amendments to the Andalusian regulations on social housing which replaced the need for validation of the agreements with a responsible declaration, were not useful and created legal uncertainty. For this reason, Decree-law 1/2025 reinstates the previous regulation and requires developers to submit the lease or purchase agreements or the award documents for validation to the relevant Territorial Delegations responsible for housing within one month of their formalisation, together with the certificate issued by the Municipal Public Register of Applicants for Social Housing on the fulfilment by the beneficiary of the conditions required for access to social housing. The validation process will be carried out within two months.
(j) Extension of the deadline for the inclusion of actions under the public programme to increase the stock of social housing for lease.
The deadline for the inclusion of actions under the public programme to increase the stock of social housing for lease is extended to four months from the day following publication in the Andalusian Official Gazette of the resolution of the head of the Directorate General responsible for social housing regarding the relevant line.
When will Decree-Law 1/2025 enter into force?
Decree-Law 1/2025 entered into force on 4 March 2025. The new procedures for validating agreements will also apply to procedures that have been initiated or are in progress.
On the other hand, as we have already mentioned, exceptional measures to change the use of land for offices, tourist accommodation or private endowment, or to increase the density and buildability of assets intended for social housing, are still awaiting the decision of the various municipalities as to their application and the specific conditions under which they will be implemented in their territories.
The Andalusian Parliament validated Decree-Law 1/2025 on 5 March 2025 and decided that it would not be processed in the Parliament as a bill, so it will not be amended.
Our services
The temporary regime of change of use and increase in density and buildability represents an opportunity for the private sector to reconvert tertiary real estate assets into residential ones, taking advantage of the demand for social leases and the other new advantages offered by the regional regulations.
However, as explained above, this new regime has important limitations in terms of time and scope of application, so it is advisable to act quickly in analysing the feasibility and profitability of potential transactions.
At Ashurst we have a skilled urban and real estate team with extensive experience in advising developers, investors and financial institutions on all types of real estate projects, both residential and tertiary. We can assist in the analysis of asset portfolios, carry out the legal study of the possibility of opting for the new regimes, collaborate in the legal design of the relevant development, advise on all the urban planning procedures and resolve any doubts or conflicts that may arise in the process.
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