This initiative represents a decisive step to balance the regional real estate market. The new law, whose principles were anticipated in November, introduces unprecedented urban incentives, allowing for an increase in development density by up to 30% and buildability by 20%. This technical strategy will facilitate an increase in the number of homes in each project without consuming new land, in addition to streamlining bureaucratic procedures to match supply with real demand.
The regulation is part of a strategy that, according to data from the regional executive, has positioned Madrid as the leading region in public housing since 2019, concentrating more than 40% of the national total built during this period.
“"The law also opens the door to collaboration on private plots for hotel use, allowing land designated for tourist accommodation to be converted into protected housing."
Likewise, the legal text revives and strengthens key figures for property access and rental, such as rent-to-own, and establishes specific aid for large and single-parent families, also promoting rental in small municipalities. Regulations are simplified with the abolition of fees for resolving conflicts between landlords and tenants.
The housing reinforcement is complemented by the My First Home program, which now allows financing properties up to 425,000 euros with 100% mortgages. In terms of taxation, the regional government highlights that, since 2019, 14 tax reductions linked to housing have been approved, with a particular emphasis on citizens under 25 years old.
Regarding social housing for vulnerable groups, the Community expects to deliver more than 700 properties this year out of the 2,100 units currently in different stages of construction during the current legislature. With the approval of this law this week, Madrid seeks to consolidate its public-private collaboration model as the backbone of its affordable housing policy.
