More than 5,300 applicants competed for the new homes in Iberia Loreto 1, aimed at young people with medium incomes. This project seeks to facilitate emancipation in the capital.
The City Council of Madrid has taken a significant step towards improving access to housing by awarding 52 new homes for affordable rent, located in the Iberia Loreto 1 development. This draw, held on 23 June 2026, attracted over 5,300 applicants, all of whom are young people and families with minor children within the medium income range. The initiative responds to a growing need in the capital, where many stable workers face difficulties accessing the free rental market due to high prices.
The delegate for Housing Policies and president of EMVS Madrid, Álvaro González, highlighted that this is the first development specifically aimed at people with medium salaries, a group that has historically been excluded from municipal policies. “With this allocation, we seek to prevent residential exclusion and promote housing stability among Madrid residents,” González stated during the event.
Iberia Loreto 1 not only represents a housing solution; it is also an innovative example in construction. This building has been erected using industrialised wooden systems and was completed just 17 months after construction began. The total investment for the project amounts to nearly 15 million euros, which includes the land value.
The homes are intended for individuals under 50 years of age, whose incomes range from 3.5 to 5.5 times the IPREM. To be eligible, applicants must meet certain requirements: they must have been registered in Madrid for at least five uninterrupted years and must not own another home or have had legal issues related to recent occupations or evictions.
Each of the new homes features characteristics adapted for different needs: there are four units designed for people with reduced mobility, as well as storage rooms and parking spaces for both cars and bicycles. Future tenants will pay a monthly rent that does not exceed 30% of their family income, meaning prices will range from 700 to 1,000 euros per month, depending on the size of the apartment.
Aside from the immediate impact on those who have secured a home, this draw also reflects a broader shift in urban policies towards greater social inclusion. Compared to previous initiatives that prioritised other population segments, this approach specifically aims to address those who actively contribute to the economic and social fabric but are vulnerable to the constant rise in rental costs.
From the day after the draw, the results will be available online for all interested parties. This transparency will allow participants to know if they have been selected to access these new affordable homes.
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