Madrid City Council has approved the transfer of €32.97 million to the Madrid Municipal Housing and Land Company (EMVS Madrid) to fund the construction of new affordable housing developments and cover the public company’s running costs, as agreed by the Governing Board.
Of the total, €20.31 million will be allocated to the construction of new developments during 2026, whilst a further €12.66 million will finance EMVS Madrid’s running costs. This is the first financial contribution that the Housing Policy Department has made this year to the municipal company, out of a total of four transfers planned for the financial year.
The allocation for running costs will enable the management of a stock of around 10,000 public homes under affordable rental schemes, as well as sustaining programmes such as ReViVa and the Rental Mediation Service (SIA). It also includes initiatives linked to the digitalisation of the municipal company.
At the same time, the funding earmarked for new-build projects will serve to continue driving the development of public housing developments in the capital. During the current term of office, EMVS Madrid has completed 21 developments comprising 1,911 public housing units, according to data provided by the City Council. The City Council adds that, according to the latest annual data from the Spanish Government, the municipal company accounted for three out of every ten homes built in the country intended for affordable rent without an option to buy.
Added to this is a portfolio of almost 5,800 homes at various stages of planning and construction. These include around 2,200 homes linked to the Plan Suma Vivienda, an initiative that provides for public-private partnership models for residential development in Vicálvaro.
The City Council also maintains that Madrid leads the way in terms of affordable public rental housing stock in Spain, according to the latest Special Bulletin on Social Housing from the Ministry of Housing and Urban Agenda. The same source also ranks the capital as the city with the highest investment in public housing between 2020 and 2023, with over €811 million, compared to €256 million in Barcelona, a difference of 316%.
Part of the new funding will enable the ReViVa programme to continue, which aims to acquire vacant properties and incorporate them into the affordable rental market through the temporary transfer of usufruct to EMVS Madrid. According to the City Council, this programme has already managed more than 200 homes in the city.
The model provides for the municipal company to take on the comprehensive management of the property, including administrative and legal procedures, as well as expenses such as the owners’ association fees, home insurance, routine repairs and council tax. It also covers the costs associated with the transfer, including capital gains tax and registration in the Land Registry.
In cases where the property requires renovation work, EMVS Madrid can advance up to €45,000 at 0% interest, as well as covering the VAT. This advance is deducted progressively from the monthly rent received by the owner. The duration of the usufruct contracts ranges from a minimum of five years to a maximum of ten.
Together with ReViVa, the municipal company will continue to acquire properties through purchases on the secondary market and will maintain the SIA, an intermediary service that provides free advice to owners and tenants and includes home insurance and rent default insurance for the duration of the contract.
