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Madrid City Council sells three land plots in Arroyo del Fresno

22 May 2015 – El País

Arjusa and CP Grupo Inmobiliario, which has invested 50 million euros, will build 750 subsidized housing units

The Municipal Housing and Land Company of Madrid has sold three pieces of land in the new district of Arroyo del Fresno to build 750 subsidized housing units. The total investment amounts to 50 million euros, according to BNP Paribas Real Estate which has been in charge of the marketing process.

Two of the land plots have been acquired by CP Grupo Inmobiliario. The first plot – and the last  transaction to go through – features a space with a building permit over 19,900 meters for 249 housing units that will be under the basic public subsidy scheme for housing. The second plot has 24,617 meters, where 254 subsidized housing units under some sort of limited price scheme are to be raised.

Arjusa purchased the third lot, whose characteristic use is for residential property under the basic public housing subsidy scheme, with a building space of 19,862 meters with 218 homes.

According to Araceli Burgos, country manager of the Land and Urban Management unit at BNP Paribas Real Estate in Spain, “this transaction clearly evidences stabilization in a market as cyclical as the land market. It highlights the strength of mature markets like Madrid and the absorption capacity of developments in the ‘Zona Norte’. Similarly, the whole pre-sale process of the final product shows the presence of a solvent demand side as well as a moderate recovery on a macroeconomic scale that would affect purchasing power.”

Original story: El País

Translation: James Leahu