A prison, 510 flats and thousands of empty homes: how the Basque Country is adding public housing
San Sebastián's former Martutene prison will make way for some 400 homes, the Basque Government is buying 510 protected flats in Benta Berri from a fund, and the Bizigune programme was managing 7,375 once-empty homes at the end of 2024. The caveat: the Benta Berri purchase is expected to be signed before the end of the year, and the Martutene project is still going through the approval process.
In February, 37 families in Benta Berri, San Sebastián, learned that their landlord would not renew their leases, according to El Salto. On 21 October, the Basque Government announced it was buying their homes. It is one of three ways the Basque Country is adding public housing. The caveat: the purchase is expected to be signed before the end of the year, and the Martutene prison project is still going through the approval process.
From prison to neighbourhood
The former Martutene prison has been empty since June, when its inmates moved to the new Zubieta prison, Orain reports. On its site and the land around it, the Txomin Enea II project plans some 400 homes, with priority for protected and affordable housing. On 4 November, Spain’s Housing Minister, Isabel Rodríguez, Basque housing minister Denis Itxaso and San Sebastián’s mayor, Jon Insausti, met in Madrid: they confirmed that the city council will hand all its land in the area to the Basque Government and are drafting an agreement to share the work and costs, according to the Basque Government. Insausti expects the prison to be demolished in the first half of 2027.
José María Sert square in the Benta Berri neighbourhood of San Sebastián. Photo: Joxemai · Wikimedia Commons (CC BY-SA 4.0).
510 flats that will keep their protection
Benta Berri’s protected flats belong to Testa Residencial, owned by the Blackstone fund, and their protection was due to end in November 2028. The Basque Government is buying them for €100 million, about €196,000 per home including garage and storage room, according to El Salto. With the purchase, the 510 homes will stay protected rentals permanently and their tenants will stay in their homes, Orain reported.
Empty homes that open their doors again
The third route is Bizigune: owners of an empty flat hand it to the public company Alokabide, which lets it at a protected rent, guarantees the owner’s rent is paid on time and commits to handing the flat back in good condition. At the end of 2024 the programme was managing 7,375 homes, according to Alokabide’s annual report.
Why this is good news
The Basque Country is adding public housing without relying only on new building: it is recovering public land, buying flats that were about to lose their protection and putting empty homes back to use. This is the fourth stop on our 11 November housing special.
Sources
- Irekia (Basque Government) · Meeting on the Martutene demolition and some 400 homes in Txomin Enea II, 4 Nov 2026 (in Spanish)
- Orain · Three-way meeting in Madrid to build 400 homes in Martutene, 2 Nov 2026 (in Spanish)
- Donostitik · Insausti expects Martutene prison demolition in the first half of 2027, 10 Nov 2026 (in Spanish)
- Orain · The tenants of Benta Berri will remain in their homes on a protected rental basis, 21 Oct 2026
- El Salto · The Basque Government pays Blackstone €196,000 per Benta Berri protected home, 29 Oct 2026 (in Spanish)
- Alokabide · 2024 annual report (in Spanish)


