Tetuán has ceased to be that district that used to go unnoticed, to become the area with the most new construction in the entire central almond of Madrid. Where there used to be shacks, now there are skyscrapers with penthouses worth around two million euros and where low houses used to stand, now four-storey blocks are being built.

This district in the north of Madrid is shedding its skin at a rapid pace and 25 new developments are currently underway, which means that in the coming years 720 homes will be built in the six neighbourhoods of the district: Valdeacederas, Bellas Vistas, Castillejos, Berruguete, Cuatro Caminos and Almenara. These are the data that emerge from the latest study on the reality of Tetouan, prepared by the real estate consultancy Activum Real Estate Consulting.

The Paseo de la Direccion, in the Valdeacederas neighbourhood, is a good example of the transformation process in which the area is immerged. On this street, the two twin Skyline towers of 24 floors, one dedicated to sale and the other to rent, which were inaugurated a year ago, have been erected.

The 600 premium homes of these skyscrapers have large common areas, including two swimming pools, gym, sauna, gardens, urban garden, a coworking area, and a gastrotheque. In addition, they have the services of a hotel such as reception, courier, catering or personal trainer.

Almost all of these flats – built by developer Stoneweg – have already been sold and only a few one- or two-bedroom units remain. Their prices have also skyrocketed: if when they began to be marketed, the square meter cost 3,500 euros, today it amounts to 4,600 euros.

The penthouses with terraces in these blocks reached 1,700,000 euros, an unusual amount for a district like Tetuán, degraded for many years and which was the cheapest in the city.

Young Professionals

The profile of the buyers are investors who allocate these residences for rent, since it is very easy to find tenants due to their strategic location. The buildings are close to the financial area of Azca, the five towers near Plaza de Castilla, the offices on Paseo de la Castellana and Ifema.

Therefore, its main clients are young professionals between 30 and 40 years old – many of them foreigners – who work nearby or who are studying a master's degree at the Instituto de Empresa.

On the Paseo de la Direccion, the insurance company Axa is also building two other towers of 24 storeys each, which will add up to 540 homes in total and which, on this occasion, will have a cheaper price, as they are intended for protected rent.

The works will be completed by the end of 2024 and the apartments will have all kinds of amenities such as landscaped gardens, swimming pool and shared communal areas.

"Like many major European capitals, Madrid has a severe shortage of affordable accommodation, especially in the central areas. After the delivery of these flats, this asset will be the only affordable and large-scale project for rent within the M-30 ring road and represents an opportunity to significantly increase the city's housing endowment, while contributing to the regeneration of the Tetuán district," said Esther Escapa, Head of Transactions and Development for the Iberian Peninsula at Axa IM.

In this way, the Valdeacederas neighbourhood concentrates 60% of the district's developments. In addition to these two large projects, the area has five other new developments with an average size of 17 homes in each, according to the report by the consulting firm Activum Real Estate Consulting.

Because, unlike the Mahou Calderón – the other large urban development operation within the M-30 with 1,300 flats already almost all sold – in Tetuán there are no large plots, but small constructions on medium-sized plots.

"The urban fabric of this district favours the demolition of low houses to build developments with three-storey buildings and an attic. Tetouan is undergoing one of the largest renovation processes in Madrid. This revitalization has made the district an extremely dynamic and vibrant place," explains Ignacio Ortiz, Director of Research and Investment at Activum Real Estate Consulting.

In Valdeacederas, the rate of sales is two flats acquired per month per project, which gives an idea of the good pace of marketing, since the sale of the development usually lasts up to two years, due to construction times.

Castillejos, the most exclusive

Berruguete is the cheapest area of the district and one of the most on offer with eight developments underway, which put 75 houses on the market. The other two neighbourhoods to the south, Cuatro Caminos and Bellas Vistas, have three and five developments that will incorporate 60 flats with a price of €5,648 and €5,733 per square metre, respectively.

In Almenara, located to the north, there are two developments, with 56 homes, while in Castillejos, the most expensive neighbourhood in Tetouan, there is only one construction underway, the Infanta Mercedes Residential, which will market 56 flats.

Housing development in Castillejos.B. DIAZ

This area, where the mayor of the city, José Luis Martínez-Almeida, lives, is the most exclusive of all and reaches a price of 6,233 per square meter.

The profile of the buyer in the neighbourhood is both the investor of small flats that are destined for rent, as well as young couples, with and without children, who are looking for a first home within the M-30 with good communications and located close to the commercial and financial areas.

On the other side of the coin, residents lament that prices have risen by 50% and that the low houses – some of them in the neo-Mudejar style – that were the essence of this working-class and popular neighbourhood are being demolished at full speed.

The Heritage Association of Tetouan is requesting the protection of 300 buildings, according to historical, economic and social impact criteria, so that they are not demolished and end up being fodder for urban speculation.

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