Community of Madrid Mobilizes 500 Million in Guarantees for Affordable Housing

The initiative aims to boost the construction of up to 10,000 public protection homes and generate 900 million euros in real estate investment.

Generic image of a construction blueprint with a safety helmet, symbolizing housing projects.
IA

Generic image of a construction blueprint with a safety helmet, symbolizing housing projects.

The Community of Madrid has launched an ambitious plan to facilitate access to housing, mobilizing up to 500 million euros in guarantees, expected to generate 900 million euros in real estate investment for new affordable homes.

This measure, resulting from an agreement with Avalmadrid, primarily aims at the construction of up to 10,000 public protection homes in the region. The guarantees will promote residential developments for Basic Public Protection, Limited Public Protection, and Affordable Rental Housing.
The regional government will contribute 15 million euros in multi-year credits to cover the risks associated with these operations, thereby ensuring their viability. These funds will enable Avalmadrid to offer guarantees to developers and cooperatives, facilitating access to financing under more favorable conditions.

"This collaboration could generate up to 900 million euros in real estate investment on land that already has the necessary urban planning procedures to begin construction within two years."

the regional government
The resources will be channeled into both rental and sales projects, with the goal of expanding the supply of affordable housing in the Community of Madrid. The first operation, amounting to 8 million euros, has already been formalized, intended for the acquisition of land in Los Ahijones for the construction of 288 protected rental homes.
This initiative is part of the Community of Madrid's Housing Shock Plan 2026/27, a regional strategy designed to increase residential supply and improve access to housing for citizens.