Madrid is not witnessing a real estate surge on par with the early 2000s boom. Yet after the bubble burst, significant progress was made to connect new areas of the capital and expand housing supply. Not every project runs at the same pace, but each follows its own rhythm and milestones. Strong demand plus tight availability attracted funds and developers to acquire large parcels of land for future development in these expanding zones.
Which developments stand out the most? Southeast Madrid dominates the conversation with Valdecarros, Los Berrocales, Los Ahijones, El Cañaveral, and Los Cerros. In aggregate, more than 118,000 new homes are planned in coming years, a figure that would surpass the populations of cities like Santiago de Compostela, Zamora, or Girona.
Valdecarros, in particular, holds attention due to its scale and proximity to Ensanche de Vallecas. Estimates project around 51,000 new homes here, roughly five times the footprint of the Government’s Camp operation that seeks to limit expansion. About 5 million of the total 20 million square meters belong to public administrations, and the development is staged across eight phases to respond to varying needs, with a budget exceeding 7.5 billion euros.
The urban plan has been prominent in the news following a €1.08 billion land purchase by fund manager Azora. It marks the region’s position as a third-largest landowner alongside Zapata, Pryconsa, the Fernández de Córdoba family, the Santos brothers, Sareb, Banco Santander, Banco Sabadell, Blackstone, and Cerberus.
Other developments in the southeast
The El Cañaveral project stands out for its progress. More than 5,000 of the intended 14,000 homes have already been completed. Spanning 500 hectares, it lists prominent promoters such as Aedas Homes, Neinor Homes, and the Marco Colomer group Pryconsa among its backers.
Property prices in the area have surged in tandem with development. Real estate data platforms show price increases of around 70 percent since mid-2015, hitting roughly 3,000 euros per square meter. Many early buyers enjoyed considerably lower prices, resulting in substantial asset appreciation. Today, finding a home under 250,000 euros is rare, and prices push toward half a million for many units.
Adjacent to El Cañaveral, Los Cerros sits in the easternmost band of the southeast developments. Urbanization work began only recently, and the project is similar in scale to its neighbor with about 14,276 planned residences. The principal landowners include Vía Célere, Vía Ágora, Metrovacesa, and Sareb.
Los Ahijones also shows space for 17,000 homes, of which 56 percent will include some form of official protection. After land preparation began in 2021, the first homes were expected to start construction in early 2023, with residents able to move in by 2025. Completing the trio of southeast schemes, Los Berrocales aims to urbanize more than 8.3 million square meters and accommodate over 22,000 homes, including roughly 7,000 VPPL and 4,300 VPO units.
There is a quiet pride in how these projects are shaping the southern belt, yet this is far from the whole Madrid story.
Not only the southeast
Not just in the southeast
Though most new homes are planned in the southern districts, the headlines are often tied to other bold visions. The former Chamartín project, renamed Crea Madrid Nuevo Norte, is moving forward. The site once owned by Adif is developing into the capital’s new financial district, featuring more than 10,000 homes, several skyscrapers, and a large park where the Chamartín Station area and tracks will be reimagined or buried. The land is controlled by BBVA, a Socimi, Merlin Properties, and the construction company Grupo San José.
Another high-profile scheme making noise but not yet underway is Solana de Valdebebas. The twin-quarter project is a milestone in Madrid’s urban planning, boasting over 30,000 registered residents in the area and a model that blends residential with commercial use. Solana de Valdebebas has seen early buyers enjoy significant gains, with some properties doubling or tripling in value. La Solana will be smaller, with about 1,400 homes, half of which will be protected.
Alcobendas also has a development under way, Valgrande, which plans 8,600 homes. Another project in the area is Monteganceo in Pozuelo, noted in planning circles and backed by official approval to initiate re-plotting. A key feature of this site is that more than half of its 70 hectares will be converted into a large public park for the community to enjoy.