Cranes Appear in the Skyline of Madrid’s Center

17/11/2014 – Expansion

Pryconsa, Ibosa, Domo, ACR and Allegra are only examples of the companies that started a new home construction in Madrid. On average, their projects include hundreds of dwellings which were immediately snapped up, in spite of the high level of stock pending sales. Currently, most new projects are proposed by cooperatives.

Managers like Ibosa or Domo have discovered a golden strike in the sales of the plots the Public Administration decided to auction off in search of liquidity. For instance, Metro has sealed a deal on its headquarters in the intersection of the Cavanilles and the Doctor Esquerro street, in the Retiro neighborhood, with Domo Gestores which will raise 209 apartments and 7 single-family homes at prices starting from €91.800 (VAT included). The dwellings will be ready in 2017.

The same co-op is at the same time building two housing developments: first, at a very advanced construction stage and formerly serving as the premises of the Town Planning department of the City Hall of Madrid. In this case, Domo will build 220 flats priced at €305.000 each in the middle of the Chamartin district.

The other development will stand on a downtown plot acquired recently by the co-op for €111 million. Located next to the Paseo de la Castellana street, the piece of land will soon see construction of 355 dwellings selling at 3.400 Euros per square meter each.

Another cooperative manager Ibosa was awarded the plot carrying the depots of Madrid’s subway and situated in the Cuatro Caminos area for €88 million. Thereon, Ibosa is going to build a high-end residential estate with 62 subsidized and 381 unsubsidized apartments, for €1.940 and €2.600 per square meter respectively.

The development, distributed over a 25-floor tower and three eight-storey buildings, is set to be delivered within few years as before starting the works, Ibosa shall underground the existing depots and create a green area of 20.000 square meters.

Apart from the cooperatives, two real estate firms significantly contribute to project reactivation in the heart of Madrid. For example, Pryconsa has just bought the old Buñuel studio of RTVE for €35 million.

Furthermore, Allegra Holding led by Mario Losantos has also acquired a plot of 6.000 square meters in Madrid, specifically in the Puerta de Hierro area, with intention of constructing a new luxury housing development, made up between 50 and 60 dwellings.

Months prior to this project, Allegra and its partner ACR, ran a venture close to the Plaza de Castilla square on the Sorolla street. Out of the 96 marketed homes, 85 have already found buyers ready to pay  2.200 €/m2.

Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE