THE WORLD Madrid

Madrid

Updated Monday, February 5, 2024-00:21

High rental prices have become a problem for citizens, but also for Madrid administrations. Because the price per square meter, already above 18 euros in the capital, is the highest since 2007 that the Idealista portal has a historical record. That is why the City Council has decided to act on the focus of this problem and is going to begin the implementation of the Municipal Land Asset Management Strategy 2023-2027.

This plan, approved on October 19 by the Governing Board of the Palacio de Cibeles, involves opening a public tender to sell 12 municipally owned residential plots for the construction of unencumbered homes. However, for the first time, the City Council will establish that for a period of 15 years, developers will have to offer affordable rental income to future tenants who will live in those properties.

The criteria that the new strategy will establish is that income cannot exceed 25% of the income of the family unit, very far from the social reality that currently exists in the capital. Currently, these families allocate an average of 42%, according to Idealista data, despite the fact that the Bank of Spain recommends 33%. That is to say, reality is at least nine points above what official regulatory bodies ask for.

The Government of José Luis Martínez-Almeida thus proposes that 640 homes be built in eight districts, especially in the southern and eastern areas of the capital, which have lower income and development rates: in Arganzuela, around the Nuevo Mahou- Calderon; in Chamartín, on José Vasconcelos street; in Latina, in the area of ​​La Medina; in Carabanchel, on Mercedes Arteaga street; e nPuente de Vallecas, on Doctor Sánchez and Sierra Toledana streets; in Ciudad Lineal, on Aroca Avenue and in the Bilbao neighborhood; in Villaverde, in El Espinillo, and in the Northern Sector of Corralejos de Barajas.

To reach that percentage of 25%, the reductions on market rents vary from 10% and 13% in the plots located in the neighborhoods of Corralejos and Castilla, and 37% in the plots located in Puente de Vallecas. In addition, the City Council will reserve a minimum percentage of 25% of the homes in each promotion for young people with a maximum age of 35 years.

The bases of the public call will establish a maximum limit of income that must be accredited, referring in all cases to the entire coexistence unit and modulated depending on the number of people who make up the unit and the income levels.

Given that the intention is to build these affordable rental homes, the municipal government will give priority in the public competition, with a total of up to 60 points, to those proposals that offer improvements in the reduction of rental income below the limitation of rent required in the tender.

In that same sense, the Cibeles Palace will evaluate the best building option with up to 20 points, taking into account the quality of the materials, the energy efficiency once the properties are completed or different urban strategy criteria. Another 20 points will also be awarded to the most advantageous economic proposal.