- Three lots in Los Berrocales have been prepared and will be put out to public tender in the coming months following approval by the Government Board.
- Around 50,832 m² of buildable floor area across eight plots will be tendered. For the first time, these developments will combine affordable rental housing with a purchase option after seven years.
- The monthly rent has been set at €949.50 for a standard 90 m² home.
- After the seven-year rental period, tenants will have the option to purchase their homes at a price of €3,600 per m². Part of the rent paid during the lease term will be credited toward the purchase price.
- Fifty per cent of the homes will be reserved for people under the age of 35.
The Madrid City Council remains firmly committed to promoting the development of new housing across the capital. As part of this effort, Madrid will put eight plots out to tender for the construction of 700 homes, reaffirming one of the current municipal government’s key priorities: helping to ease the housing crisis and meet the needs of thousands of residents seeking a home in the city.
For the first time in Madrid, and within the framework of the Southern Strategy, an affordable rental model will be combined with a tenant purchase option, allowing residents to buy their homes after seven years from the date of the first rental payment. One of the scheme’s most significant features is that 50% of the homes built will be reserved for people under the age of 35, the demographic group facing the greatest challenges in accessing housing.
Through this initiative, the City Council will dedicate 50,832 m² of buildable floor area on municipal land for public benefit. The prices of the 700 homes delivered under the programme, both for rent and purchase, will be approximately 31% below current market levels. Monthly rent has been set at €949.50 for a standard 90 m² home. Should tenants choose to purchase their property after the seven-year rental period, the sale price will be €3,600 per square metre. In addition, part of the rent paid throughout the lease term will be credited towards the final purchase price.
A New Boost for Southeast Madrid’s Urban Developments
The eight plots are valued at €65.4 million. They have been grouped into three lots that will be put out to public tender in the coming months, all located in Los Berrocales. The first lot comprises four plots with capacity for 260 homes, the second includes two plots for 230 homes, and the third consists of two additional plots for 210 homes.
The evaluation criteria will be divided between the financial proposal (0-10 points), including the purchase price offered and payment terms, and the technical building design proposal (0-20 points). The latter will assess passive energy-efficiency standards (0-8 points), building envelope protection systems and measures to improve environmental performance (0-3 points), energy-saving systems and carbon-emission reduction measures (0-2 points), sustainable building management systems (0-4 points), and the usable floor area of the homes (0-3 points).
Requirements for Tenants and Homebuyers
To be eligible for rental housing under the scheme, applicants must demonstrate, at the time of signing the lease agreement, that the annual income of the household or cohabitation unit does not exceed the maximum family income threshold established under Spain’s Public Multiple Effects Income Indicator (IPREM). For households comprising more than six members, the maximum income limit will be €61,200 per year annual income limits are set at €61,200 for households with more than six members, €54,000 for households of two to five people, and €43,200 for single-person households.
Only natural persons with a demonstrable link to the municipality of Madrid may qualify as tenants. Applicants must either have been registered as residents in Madrid continuously for at least one year immediately prior to the signing of the lease agreement, or have been registered for at least three years within the five years preceding the contract date.
For applicants who are not registered residents of the city, eligibility may also be established through continuous employment at a workplace located in Madrid during the two years preceding the lease agreement. Employment status may likewise be demonstrated through receipt of unemployment benefits, provided registration with an employment office located in Madrid can be verified.
A tenant or any member of the household may only occupy one dwelling within the plots included in this programme or in other developments promoted or owned by the Municipal Housing and Land Company (EMVS Madrid). Neither the homes nor the parking spaces may be sublet. Failure to comply with this requirement will constitute grounds for termination of the lease agreement.
Priority for Bids Offering Lower Rental and Sale Prices
The Madrid City Council will give greater weighting in the tender process to proposals that offer reductions on the maximum rental prices established for the scheme. This will be one of the highest-scoring criteria in the award process, accounting for up to 50 points. Additional points, up to 20, will be granted for proposals that reduce the capped sale price of the homes.
Other highly valued criteria will include the quality of the building design, worth up to 20 points, with preference given to projects incorporating sustainable and energy-efficient solutions such as renewable energy sources, green roofs and façades, and measures to enhance the microclimatic comfort of outdoor spaces.
Bidders will have a period of three months to submit their proposals, starting from the day following publication of the tender notice in the Official Gazette of the Community of Madrid (BOCM).
Source: Diario de Madrid