Analysis by Ignacio Ortiz, Director of Research at Activum Real Estate Consulting
- These metropolitan areas in the southeast of Madrid, formed by Valdecarros, El Cañaveral, Los Cerros, Los Ahijones and Los Berrocales, have a capacity of 100,000 dwellings.
- In terms of housing, the supply of new construction at the moment is in El Cañaveral, with approximately 20 new developments.
The real estate consultancy Activum Real Estate Consulting has analysed in its latest study the development of new housing in the Southeast of Madrid, detailing the type of housing and average price.
What are the South East Developments and what is their current status?
These are a series of areas that surround Madrid to the east, on the edge of the municipal area, with a capacity for more than 100,000 dwellings. In terms of number of dwellings, they have the following:
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- El Cañaveral 14,000
- Los Cerros 14,000
- Los Ahijones 16,500
- Los Berrocales 22,000
- Valdecarros 51,600
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In terms of housing, the offer of new construction at the moment is in El Cañaveral. There are approximately 20 developments. On the other hand, Los Berrocales has started its activity with announcements of cooperatives for free and subsidised housing. Ibosa is the protagonist.
What type of housing is being developed, at what prices?
The typical flat is a two-three bedroom flat, €3,000/m².2c, in urbanisation with garden and swimming pool. There are specific promotions of semi-detached houses, with prices between 550,000 and 600,000 euros.
How are these developments progressing today?
In July, the City Council gave the green light to the urban development project of Los Cerros and work will begin this September. A first phase - of the three planned - will be developed with capacity for 4,175 dwellings. At the end of the year it will be possible to combine urban development and housing construction.
- Los Ahijones are already being developed. The first phase, with a capacity of 3,132 dwellings, is scheduled for completion by mid-2023. It will have a total of five phases. Among the major owners is La Llave de Oro, which has recently purchased land to develop 1,700 homes.
- At Los Berrocales development is planned in six phases. The first phase is well advanced and will have 4,500 homes. A week ago, the cooperative management company Ibosa was awarded the first two plots at public auction. They are protected and have a capacity for 300 homes in total. The housing is expected to start at the end of 2023 and to be delivered two years later. Prices range from 160,000 to 280,000 euros.
- Valdecarros will be developed in eight phases. The first phase is already underway and the second and third phases are scheduled to start in 2023 and coincide with the first phase. These alone have the capacity for 13,500 dwellings. The first homes are expected to be delivered in 2026 - 2027.
The developments in the Southeast will provide a very significant number of housing units for the city of Madrid. More than half of these homes are subsidised housing (VPO), which will be a great opportunity for young people to invest in new-build properties.
Source: Activum.es as of 7/2022. The ranking is based on the developments advertised on real estate portals and on the websites of the developers studied.
