Basque Government Purchases 510 Blackstone Homes to Preserve Rent Controls

Spain’s Basque regional government announced the acquisition of 510 apartments from Blackstone subsidiary Testa to keep them under protected‑rent status.

April 2024 – Threat to Tenants

About 500 families in San Sebastián’s Benta Berri neighbourhood had been warned that their publicly subsidised homes would lose protected status in November 2028. The landlord, Testa, told tenants the units would move to the open market, risking rent hikes from the current €800‑€1,000 per month.

May 2024 – Government Intervention

The Basque government confirmed it would buy the entire block of 510 units. This marks the first time a Spanish public authority has purchased a portfolio of this size from an investment fund.

June 2024 – Expected Outcomes

By taking ownership, the regional administration plans to extend the rent‑control regime for the apartments, ensuring tenants remain in affordable housing beyond the 2028 deadline.

Current Status

The transaction is proceeding, with the government set to finalize the purchase and integrate the properties into its public housing stock. Tenants await confirmation that their leases will continue under protected terms.

Why it matters:

The deal safeguards housing affordability for hundreds of families in the Basque Country, a region where rent pressures have risen sharply. It also sets a precedent for public bodies in Spain and the wider Middle East to intervene in private‑sector housing markets to protect vulnerable residents.