Madrid, January 13 – After nearly forty years of delays, construction has officially begun on the “Nuevo Barrio Campamento” project, located in Madrid’s La Latina district. This ambitious urban development aims to deliver 10,700 affordable homes, available for both ownership and rent, directly addressing the capital’s pressing housing affordability crisis, characterized by soaring property and rental prices.
Demolition Signals Start of Major Housing Initiative
The project commenced with the demolition of the first buildings in the Campamento barracks, an event attended by Spanish Prime Minister Pedro Sánchez and the Minister of Housing and Urban Agenda, Isabel Rodríguez.
Prime Minister Sánchez emphasized the shift from promises to action, stating, “Four years ago, we made the decision to promote this project, and today we move from words to deeds. This time, we are not here to present a plan or promise a future; we are here to begin the works and announce that today, finally, a new neighborhood is beginning to be built in our country, in the Community of Madrid, in the city of Madrid.”
Minister Rodríguez highlighted the project’s unique nature, calling it “the best” presented in the last 40 years, primarily because 100% of the homes will be developed by a public company and will be affordable. She reiterated, “There will be homes for rent and for sale, but all will be affordable.”
Affordable Prices Below Market Rates
While the exact sale and rental prices are yet to be finalized, it has been confirmed that they will not exceed 30% of the median income for the area, ensuring affordability. For sales, prices will be significantly below market value. Eligibility for ownership will be open to individuals with incomes between 2 and 7.5 times the IPREM (Public Indicator of Multiple Effect Income) who do not own other properties.
Last year, during the project’s presentation, sources from the Ministry of Housing and Urban Agenda indicated that sale prices would be around 200,000 euros, a figure considerably lower than current market prices in Madrid. According to Fotocasa data, the average price per square meter in the La Latina district, where the new development is situated, is 3,822 euros. This means a typical 80-square-meter home would currently cost approximately 305,760 euros at market price.
Similarly, rental prices for a 70-square-meter apartment were estimated to be around 540 euros per month, calculated using the reference price index for rent established by the government last year. This is substantially lower than the current average rental cost in Spain, which, according to idealista, is around 14.6 euros per square meter, translating to about 1,022 euros for a 70-square-meter apartment.
From Barracks to a Modern Urban Hub
The demolition of the old Campamento barracks, awarded to Construcciones Arribas Gozalo S.A. for 1,446,348.04 euros (including VAT), encompasses both the demolition work and waste management. The area still contains military structures, some with heritage protection, but most of the 57 buildings are disused or lack significant value.
Specifically, the demolition work targets 37 disused buildings or warehouses, 10 guardhouses, and 10 enclosures defining the perimeter of the internal compound.
Nuevo Barrio Campamento represents the most significant public urban regeneration project at the state level, spanning over 211 hectares (2,110,000 square meters) in southwest Madrid. The homes will occupy 25% of the available land, with the remaining 75% dedicated to public uses such as facilities, streets, recreational spaces, and green areas designed to foster social cohesion.
Sources from the Ministry of Housing affirmed that “the action will be developed in accordance with architectural quality parameters and with a commitment to renewable energies, decarbonization, and sustainable mobility.”
Source: Infobae
