The municipal government of Madrid will continue its strategy of selling public land to private developers, with the condition that the resulting homes offer affordable rents for a period of seven years. This decision comes after it was revealed that five plots sold under this same scheme in Arganzuela are being offered for self-rental at sums reaching 660,000 euros.
The case, described as a "scandal" by the opposition party Más Madrid, reveals how a cooperative acquired public land plots at a low cost, theoretically intended for affordable rentals. However, the developer is reportedly facilitating buyers' ability to rent each apartment to themselves, a practice that Mayor Martínez-Almeida has defended, stating that "legality is scrupulously observed" and that the cooperativists are not yet owners.
Despite criticism, the mayor announced the upcoming sale of ten additional plots, valued at over 82 million euros, to build approximately one thousand homes. The new model will include an option to buy, allowing tenants to deduct part of the rent paid from the final purchase price. "It is what gives people security," stated the mayor, justifying this model over long-term rentals and the recovery of municipal plots by the council.
The new plots, with a buildable area of 70,410 m2, are located in Vicálvaro, within the developments of Los Ahijones and Los Berrocales. It is anticipated that half of the homes will be reserved for individuals under 35 years old, with rents and sale prices estimated to be 31% lower than the current market rates. The building design will carry significant weight in the bidding process, followed by the economic proposal.
“"What Almeida is announcing is almost worse than what we already denounced with the Mahou Calderón plot. They will not be protected housing, but free market, which raises many unknowns, such as what will happen when the seven years pass and tenants exercise their right to buy. This land belongs to the people of Madrid, not to Almeida or his real estate friends. When you hand over public land for private entities to build and profit, you lose it forever."
Más Madrid criticizes this operation as "selling off public heritage so that funds and developers get rich," while "normal" people continue to struggle to afford rent. The opposition proposes an alternative: the creation of a public housing rental park, managed by the City Council, with prices adjusted to families' real incomes.
