Housing demand in Madrid amounts to about 34,000 units per year and, given that it takes two years to develop a new building, the city has a clear shortage of supply, said Luis Roca de Togores.
De Togores, is president of the community council of Valdecarros, a large development area to the south east of the city that will be developed over the next 15 years and provide more than 50,000 housing units.
“It’s important to notice the size of Valdecarros – 50,000 units – beside the whole Southeast development which is 120,000 units,” De Togores said.
While the government has a 36% stake in Valdecarros, private investment has a major role to play in the area’s development and as well as bringing opportunities to develop 2,000 units of housing very soon there are also logistics, shopping center and office development sites.
“Of course we need financing for investment in enabling works, which is going to total €1.3 billion, but it’s also very important to diversify the profiles of investors so that we can develop well-varied products,” he told Real Asset Insight.
Within the residential allocation, different types of housing will required, such as co-living and senior living. “That will only be provided by different investors with different perspectives that provide the development with a varied product that can cover different needs of the people,” De Togores added.
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