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Developers Eye More Than €30 Billion in New Business in Madrid

21 August 2019

Developers are eyeing huge new possible investments they expect to build approximately 130,000 new homes over the next 25 years. That is in addition to major new investments in offices, retail spaces and industrial buildings. The sale of homes and other properties is expected to exceed €30 billion.

Developers are planning two new centres of investment in the north and southeast of the capital. The developments include Operation Chamartín (since renamed Madrid Nuevo Norte) and five new neighbourhoods to the southeast: Los Berrocales, Valdecarros, Los Cerros, Los Ahijones and El Cañaveral.

Operation Chamartín was finally approved last month by the municipal assembly, after a 26-year hiatus. A report by the city council forecasts that total sales of homes, offices and commercial areas will reach €13.198 billion, €10.2 billion of which will come from offices and retail areas. 10,500 homes will also be built in the area surrounding the Chamartín train station, 24% of which will have subsidies.

A development with a total of 118,737 homes is also planned for the city’s southeast. Sales for this area are expected to reach more than €20 billion over 25 years with profit margins reaching 20%. El Cañaveral, where construction has already begun, will see total investments of €3 billion. Next will be Los Berrocales and then Los Ahijones by 2021. Lastly, work will begin on Los Cerros and Valdecarros, with plans for more than 50,000 homes, the first of which will be ready in a decade. The owners of these developments, excluding El Cañaveral, calculate investments exceeding €13 billion, generating 965,000 direct and indirect jobs over the next few years.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner