If the state wants to build mass housing that will match the existing park with that of other European Union countries, as promised by the Head of Government, it will have to incur significant expenditure or gain the appetite of large international investment funds. Pedro Sánchez in this election campaign. around Spain 300,000 public rental homesAccording to a recent report by the Catalan university Esade, it covers between 2.5 and 3% of households, compared to 9.3% on average in the Eurozone.
Numerous new construction projects are underway, according to Esade, although the executive has stated that the intention is to open 20% of the park to the public within 20 years, which is “almost impossible”. Sareb will allocate between 10,000 and 15,000 affordable rental homes at the state level, excluding communities and town halls, although the plan is still in the design phase. Moreover State Land Establishment SepesDepends on transportation, has planned its construction 36,000 floorson both Department of Defense land and its own property as assets, but many require many years of urban planning processing.
How much would it cost to build all these houses?
Public companies and the Ministry of Transport are examining the formula for developing all the contracted offices with public-private cooperation. This includes concession mechanisms where the Administration provides the required land and a company is responsible for the construction and management of the properties and receives rental income for a period of at least 40 or 60 years. Sources from the real estate sector explain to El Periódico de España from the Prensa Ibérica group: Sepes already in touch with international infrastructure funds interested in their projects but requesting changes in concession arrangements.
On the contrary, according to Carolina Roca, president of the Madrid Real Estate Developers Association (Asprima), if the State stopped looking for private partners and decided to develop everything on its own with only public funds, He would have to invest about 120,000 Euros per head. living place just to cover the cost of construction. In addition, it will be necessary to get all the capital invested in urbanization, the process of making the land a finalist and ready to start work.
for homes only Sareb and Sepes have programmed that they will need 6 billion 100 million euros to start work.. According to the latest report of Asprima, this expenditure is more than the amount allocated to education in the 2023 General Government Budget. The Madrid developers employers association assures that housing “never had the budget allocation that education, health or employment promotion has” and that this is why “the public housing stock is lower than desired”.
Public-private cooperation
Although governments and parties place public-private cooperation at the center of their election campaigns, the real estate sector calls for common sense. not “a panacea” this will only solve housing access issues. Autonomous communities and municipalities that started it They had to solve numerous problems in order to keep going..
First, despite the possible current investor appetite of the private sector, real won’t happen because there are big offers in the contests launched. It is not easy to close the financing, especially in the current situation of rising interest rates. To all this we must add the recent approval of the game-changing Housing Act for funds that have already invested in recent years and may not want to do so again.
This Community of MadridOf the 15,000 items he wanted to implement in Plan Vive during this legislature, only managed to award 6,600 prizes and two international investment funds. Ayuso Manager had difficulty finding candidates at the first interview, in addition to major difficulties in closing funding, it was ‘extremely’ saved and one of the four lots was abandoned. It also received only one bid in the second tender.
plan Valencian general to build approximately 1,100 affordable rental homes failed on first callNo bids due to low profitability for successful bidders. In the second tender, including the Next Generation Funds in the contract, it changed the specifications mid-process and finally took over only one interested party, the ‘joint venture’ of Visoren and Urbania.
HE city of Madrid A tender was made for the development of 2,000 flats in the municipality. rejected by key executivesSuch as the real estate division of Axa insurance company or Avalon Properties, a subsidiary of the North American fund Ares, which has acquired two plots in the Community of Madrid. Finally, he had the support of developer companies that would be responsible for the design and construction of buildings, but would sooner or later have to sell them to a third party.
The company, which was founded by the City Council and the Barcelona Metropolitan Region with contractors Neinor Homes and patriarchal Cevasa to build 4,500 houses, is not rosy either. Although the award is in May 2021, Construction of the buildings has not yet begun.It is expected to launch at least a handful of promotions over the summer, while the rest are under licensing.
Certainly, the legal deadlines for this type of project is one of its biggest cons. In the transfer of the Heritage Administration, it has to be done by public tender and covers a process that takes months until the final decision is reached. Subsequently, the developments enter the licensing phase, which depends on the municipalities. while in a traditional construction can be delivered in two and a half or three years in this format since the finalist land was purchased may take more than four.
However, such policies are a good option for public coffers because has zero costas well as solving the accessibility of middle and low income earners. In some cases they represent revenue because successful bidders pay an annual fee and in any case not only land but also the residences will be the legacy of the Administration when the contract expires..