5/12/2014 – Expansion
Last November 5th, Domo Gestora acquired the most coveted residential plot up for sale in Madrid, located on the Raimundo Fernandez Villaverde street, for €111 million. Founded in 2006 by Feliciano Conde, the cooperative manager set its sights on uniting people who wanted to buy a dwelling in the tough times of the recession.
As Mr Conde explained, ‘our cooperative success roots from avoiding acting like a developer and sell at prices below the market. If a co-operative member leaves, they may be easily subsituted, but in case of the Raimundo Fernandez Villaverde (a minute-walk from the Castellana), the homes will be 30% cheaper‘.
Co-ops took the baton from large developers during the crisis. ‘As we need no margin, we may offer more for land. In co-ops there is no space for speculativity because their law doesn’t allow that’, he assured.
Moreover, these projects obtain home-construction financing which depicts pretty restricted presently. ‘Now, only absolutely secure projecs may pass as banks give credits solely to solvent managers and under strict conditions’.
Currently, together with its one thousand members, the co-op manager develops 9 projects in Madrid, ‘where the demand is crushing’, but also we fixed an eye on opportunities in Sevilla and Malaga. ‘Althought at the beginning it was difficult, we have managed to prove that cooperative construction of luxury homes is possible and that makes us extremely proud’.
For example, their projects offer under-floor heating and exclusive materials, woodwork and finishes. ‘Additionally, the co-op members may specify how their dwelling would be like before the building works begin, while a developer would add correspondent fees for that’.
The Viable Projects
Some of the initiatives are planned on land which formerly belonged to the Public Administration. ‘First was the plot on the Guatemala street, before housing the City Hall of Madrid and empty as previous developer had not managed to build it up. It was clear that only a co-op could take care of it’, the director highlighted.
‘We are bound to deliver several detached homes in Tres Cantos and an entire housing development in Vallecas’.
Domo, like other cooperatives, looks for its clients on the Internet. They tell where and what kind of property they want. ‘We gain 95% of our members this way. Currently, we have 2.500 people interested in a lot to be tendered next year in Padre Damian’, Mr. Conde assured.
Original story: Expansión (by Rocío Ruiz)
Translation: AURA REE