The Future Will Bring 128.000 Houses in Excess in Madrid. Dwellings Cheapen by 8.6%.

In a decade, between the years 2010 and 2020, in Madrid there will be about 275.000 houses in supply, both newly constructed dwellings and the pre-owned houses that at the moment remain empty but supposedly will go to the market. Nevertheless, during these 10 years barely 147.000 new houses will be constructed within the city, according to the real estate and demographic sources cooperating with the City Council.

Thus, in the Cibeles Palace they reckon that the pending urban developments (particularly situated in the south-east from the Hall) “shall be planned in tune with the real demand, taking into account the future growth in population” in the capital itself, as well as within the region. (…)

The preview of the Urban Development Plan for Madrid (PGOU), being in the consulting stage right now, estimates that around the year 2020 there might be 41.869 new houses for sale built through six PAU (the City-Planning Programs): Los Cerros (4.175), El Cañaveral (13.446), Los Ahijones (3.132), Los Berrocales (4.505), Valdecarros (13.371) and Arroyo Fresno (3.240).

Even though in several of the districts the construction works have not started yet. (…)

If it comes to the developments in the south-eastern part of the city, 34.000 houses are predicted to be constructed in the field with the sidewalks already laid and the sewers installed. This would be, for instance, the case of Valdebebas (…).

Finally, there is the 400.000 empty houses issue, said to be found all over Madrid. Only a half of them could be possibly sold (…).

In total, in the decade mentioned above, there will be a supply of more than 275.000 houses. Unfortunately, the city will demand only 147.350 new homes. Therefore, the real estate map of Madrid is going to be marked by 128.000 property in excess.

In the golden age of the real estate market, the Official College of Architects of Madrid authorized the construction of 78.793 new houses within the region in a single year. In comparison, the number of permits issued in 2012 oscilated a little bit higher than 8.000 and in the first three quarters of the last year it ended up at 6.238.

A strong impulse for the developments in the south-east is foreseen from now on by 2020 (…). At the moment, only El Cañaveral started to build houses as it has got 2.669 houses constructed out of the scope of almost 14.000 scheduled.

The most ambitious PAU is Valdecarros, gathering 48.000 houses constructed on its account. (…)

Besides the delays caused by legal matters (all the new constructions have been paralyzed within a year), the ballast of the recession propitiated the creation of the Framework Agreement on Facilitating and Accelerating Management of the Developable Land Areas Scheduled in the East Development Strategy. (…)

In order to allow the building projects in the new districts of Madrid, the city authorities pledged to consider the offers from the companies that want to “size and position” dwellings in the implementation stage, (…).

The price for a new home in Madrid continues to adjust with decrease of 8.6% in 2013. According to the data from the Valuation Society, the real estate market in the capital noted down (…) an average price per square meter at 2.726 Euros. The amount suggests a 41% reduction since the beginning of the crisis. The decline of price in Madrid is higher than the national average (7.8%), Europa Press informs.

An average size house´s price in the city of Madrid plotted out the level of 2003. During 2013, the prices which suffered the sharpest decline were recorded in: Ciudad Lineal (16,3%), followed by Villaverde (15,1%), Villa de Vallecas (12,2%) and the very Center (9,5%). Salamanca (4.542 Euros per square meter) keeps its leading position as the most expensive district, next are Chamberí (4.217) and Centro (3.650 Euros). On the other end of the ranking place the least expensive Villaverde (1.760) and Villa de Vallecas (2.087 Euros).

Source: El Mundo