A new horizon for housing in Madrid
The City Council of Madrid has taken a significant step towards addressing the housing crisis affecting many citizens, particularly young people and families. In a recent press conference, Mayor José Luis Martínez-Almeida announced the tendering of ten plots in the urban developments of Los Berrocales and Los Ahijones, where 1,017 affordable homes will be built under an innovative model: rent with an option to buy.
This project is part of the Southern Strategy, a municipal government initiative designed to increase the residential supply and facilitate access to housing in the capital. Almeida highlighted that this formula is pioneering within Madrid's public housing policies and aims to provide viable alternatives for those wishing to settle in Madrid.
The plots, located in the district of Vicálvaro, total 70,410 square meters of buildable land. Once the administrative processing is completed, they will be put out to public tender. The proposed model allows tenants to initially reside under an affordable regime and have the option to purchase their homes after seven years. The monthly rent has been set at €949.5 for a typical 90-square-meter home.
Throughout the rental period, part of the money paid by tenants will be counted as capitalisation to reduce the final price when exercising the right to purchase, set at €3,600 per square meter. This approach not only facilitates initial access to housing but also promotes a gradual transition to ownership.
The programme stipulates that at least half of the homes will be reserved for people under 35 years old. This measure responds to the specific difficulties faced by this demographic group when trying to access the real estate market, especially when looking for their first residence.
According to municipal estimates, both rental prices and the final values for acquiring these homes will be approximately 31% below the current average of the Madrid real estate market. This represents a unique opportunity for those seeking stability and quality in their residential life.
Unfortunately, this ambitious plan is not without challenges; the ten plots have a combined valuation of approximately €82 million, divided into four lots. Three lots will be located in Los Berrocales and one more in Los Ahijones, where up to 273 additional homes are expected to be built.
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