The housing situation in Madrid is so complicated—due to high demand, low supply, and the constant rise in prices that the Government of the Community of Madrid has strengthened the “Mi Primera Vivienda” program by raising the maximum property price limit to 425,000 euros (up from the previous limit of 390,000 euros) and extending the age range of eligible beneficiaries to 50 years old.
This update to the regional plan aims to adapt public guarantees to the ongoing rise in prices in Madrid’s real estate market and to assist households with stable incomes capable of covering the monthly payment but lacking the necessary savings to make the down payment.
Staggered financing based on profile and age
The program does not provide direct subsidies but acts as an institutional guarantee covering the portion of the purchase price or commercial appraisal value that exceeds 80%, which is typically provided by banks. The financing terms are structured as follows:
- Up to 100% financing: reserved for those under 40, as well as large families, single-parent families, or families with dependent minor children (including cases of adoption or recent birth).
- Up to 95% financing: aimed at applicants between the ages of 40 and 45.
- Up to 90% financing: for buyers between the ages of 45 and 50.
Eligibility Requirements and Eligible Properties
Purchases may include both resale homes and new construction developments in any municipality within the region. To qualify for the program through banks participating in the agreement, applicants must meet the following criteria:
- Legal residence: Proof of continuous and uninterrupted residence in the Community of Madrid for at least the two years prior to the application.
- Ownership: Applicants must not own any other home within Spain.
- Use of the property: The home must be used as the owner’s primary and permanent residence for a mandatory minimum period of five years.
With this expansion, the regional government aims to alleviate the main bottleneck in the residential market, where banks’ requirement to contribute up to 30% of the total price (including the down payment and taxes) has consistently delayed the ability of Madrid’s middle-income residents to become independent and purchase a home.