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Town Hall of Madrid Puts Plot up for Auction for €16M

19 December 2017 – Eje Prime

The Town Hall of Madrid is putting a plot of land up for sale. Through the company ‘Empresa Municipal de Transportes’ (EMT or Municipal Transport Company), the Town Hall led by Manuela Carmena has convened an auction for a plot of land measuring 37,475 m2, for which it is asking a minimum price of €16.3 million.

The land, located in the district of Carabanchel and owned by the EMT, is allocated for residential use and has a buildable surface area of 26,820 m2, which means up to 268 homes could be built on the site, according to El Confidencial.

The timing of the operation is no coincidence. It comes as no surprise that Madrid is suffering from a lack of developable land, and so more than a handful of property developers are expected to want to acquire the plot. Significant price rises being seen in the Spanish capital, an area that saw some of the highest price increases in the country during the third quarter of the year, of up to 6.8% YoY.

Until 2006, the land housed the EMT’s bus depot in Buenavista and since then, the transport company of Madrid has tried to sell it on several occasions. The closest it came to awarding the plot was in the same year that it abandoned the site when it was asking €75 million for the plot. The auction will close on 9 January 2018 and the identity of the firm that will take over the ownership of this developable land will be announced on 15 January.

Original story: Eje Prime 

Translation: Carmel Drake