The Mayor of Madrid, José Luis Martínez-Almeida, and the President of ASPRIMA, Carolina Roca, held a meeting with investors at the international forum MIPIM, under the title Madrid in Transformation: An Opportunity for the Future. The session, which aroused great interest, brought together an audience of 100 investors from 90 countries and was sold out.
In a close conversation, Carolina Roca interviewed the Mayor, reviewing the city's recent achievements and outlining the future challenges for Madrid. In response to her questions, Mayor Martínez-Almeida commented that "we have the challenge of continuing to attract talent and to offer housing solutions to the 120,000 new Madrileños expected each year over the next five years".
At a time when construction is booming, Madrid is on track to lead the way in affordable housing construction in Europe over the next decade. These achievements, the mayor explained, are the fruit of public-private collaboration and the result of housing policies focused on simplifying regulations and reducing bureaucracy.
One of the key themes of the talk was Madrid's commitment to affordable housing, aligning the city's unstoppable growth with an affordable housing model. Madrid is the European capital with the most land under development. Forecasts made by the LandCam tool, the result of an ASPRIMA agreement with Atlas Real Estate Analytics, show that new developments currently in the pipeline in the municipality of Madrid will provide land for more than 120,000 homes, approximately.
In addition to housing, Martínez-Almeida highlighted the importance of reconciling residential growth with economic activity, referring to the regularisation of Tourist Use Housing (VUT) in order to preserve the identity of the centre of Madrid, finding a balance through regulation. The Mayor concluded his speech by encouraging investors to continue investing in the Spanish capital.
Trinity Project
ASPRIMA also focused its presence at MIPIM on the second edition of the Trinity Project, developed in collaboration with the Association of Real Estate Consultants (ACI), whose main objective is to explain to investors the reasons why the Community of Madrid is the most attractive place in Europe to invest in housing production.
ASPRIMA estimates that in 2028 the Madrid Region will need an investment in housing of 10,000 million euros (almost 37% of the capital at national level), for an estimated production of 30,000 homes that same year. A figure that is still far from the 50,000 units needed to meet demand.
The report reflects that of the total investment of 12,584 million euros that Madrid needs for 2028, almost 10,000 million euros will be allocated to new housing, 1,200 million euros to flex living projects, 750 million euros to student residences, 400 million euros to rehabilitation and 300 million euros to change of use.
The ASPRIMA report points out that the housing deficit in the CAM stands at 87,000 units from 2021, to which should be added 100,000 units of pent-up demand, compared to a current production of 18,000 homes per year.
Madrid Region at MIPIM: Strengthening Investment and Learning from Other Regions
During MIPIM, the Vice-Minister of Housing, Transport, and Infrastructures of the Madrid Region, José María García Gómez, and the General Manager of Housing and Urban Renewal of the Madrid Region, María José Piccio-Marchetti, were welcomed in the Lisbon Region stand to present their key initiatives aimed at fostering investment and addressing housing challenges.
José María García Gómez highlighted Plan VIVE, the most ambitious public-private housing initiative in Spain, and possibly in Europe. This initiative aims to ensure affordability by continuously reviewing housing provisions in line with families purchasing power, incorporating industrialized, high-energy-efficient construction methods with a strong social impact.
María José Piccio-Marchetti elaborated on the regional government's strategy, emphasizing how the administration provides land to private developers. So far, the initiative has facilitated the construction of 13,000 units across 75 developments, with 4,600 houses already completed, attracting over 1 billion euros in private investment. Currently, efforts are focused on developing 4,400 housing units specifically for young people.
José María García Gómez also emphasized that legal certainty and profitability are key factors in attracting investors. He outlined two primary reasons for Madrid’s participation at MIPIM: first, Madrid aspires to be a leading metropolitan area in Europe, making a strong presence at MIPIM essential; second, MIPIM provides an invaluable opportunity to connect with potential investors and present transformative projects shaping the city's future. Additionally, he stressed the importance of learning from other regions at the fair to refine and improve Madrid’s policies in alignment with investor expectations.
By fostering international collaboration, promoting housing affordability, and ensuring regulatory stability, Madrid continues to solidify its position as a prime destination for global investment in urban development.