Madrid is preparing more than 700 housing units in Los Berrocales, in the Vicálvaro district, under a program that will allow tenants to move in and have the option to purchase the unit after seven years. The City Council announced yesterday that it will put eight municipal plots up for bid to develop these projects. The financial benchmark is a three-bedroom home with 90 square meters of floor space, with a monthly rent of around 949.50 euros.
The initiative includes a quota for young people: at least 50% of the homes planned on each lot must be designated for rent to people under 35. The City Council is presenting this option as an alternative for those who do not qualify for public housing but also cannot afford to purchase a home with bank financing at market rates.
How much will the rent cost, and what additional expenses will apply?
The 949.50 euros per month corresponds to the announced standard unit, not a single rate for all apartments. The reference rent is tied to the floor area, and the final terms will depend on the bidding specifications and the bids submitted. According to City Hall, this amount would be more than 30% below market rates, a comparison based on the city’s estimate.
Parking spaces will incur an additional fee: up to 60 euros per month for underground spaces and up to 35 euros for above-ground spaces. Therefore, an apartment with the reference rent and an underground parking space at the maximum rate would total 1,009.50 euros per month. Rent increases may not exceed 2% annually, according to the announced terms.
Purchase will be optional
The seven-year period will begin upon signing the lease agreement, and once that period has elapsed, tenants will have the option to purchase the home. The City Council estimates the indicative sale price of a typical home at around 300,000 euros and notes that any accumulated capitalization, if applicable, could be deducted from that amount.
This point requires caution, as yesterday’s announcement does not specify what percentage of the monthly rent would be deducted, nor does it allow us to confirm that the entire rent paid will be subtracted from the final price. This condition must be verified in the bid documents and the corresponding contract.
What requirements must tenants meet?
Eligibility will be based on the income of the family unit or household, which must be verified upon signing the lease. The municipal announcement establishes the following annual income limits:
- Per person: 43,200 euros.
- Units for two to five people: 54,000 euros.
- Units for more than six people: 61,200 euros.
In addition, applicants must prove a connection to the city of Madrid. This includes having been registered as a resident for the entire year immediately preceding the lease agreement, or for at least three of the previous five years. It is also acceptable to have carried out one’s primary employment continuously at a workplace located in Madrid during the previous two years.
There will be restrictions on subsequent sales
The option to purchase will not allow for immediate resale on the open market. The City Council has established a 15-year period from the date of acquisition before the homes can be freely transferred, with the aim of preserving their affordability. If the tenant withdraws or terminates the lease early, the successful bidder may sell the property to third parties who meet the conditions set forth in the bidding documents.
For now, the announcement does not open a registration period for future tenants nor set a date for handing over the keys. The next step is the bidding process for the plots; afterward, the projects must be awarded and built. The deadline for submitting bids in the tender is for interested companies, not for individuals seeking housing.diario.
Los Berrocales will be the first project of this type. The City Council also plans to launch another one in Los Ahijones, within the same district.