A report by the CNMC estimates that 45% of the costs and litigation related to land contribute to the final price of a house. Asprima calls for the acceleration of land development in the Community of Madrid.
The 45% of the final price of a home is allocated to cover costs and litigation related to land. This is the main conclusion of the study ‘Urban Transformation of Land for Housing’ presented by the National Commission on Markets and Competition (CNMC), as reported by idealista.com.
The report was presented by Rocío Navarro-Rubio, a commercial technician and state economist at the CNMC, who pointed out that the urban regulatory framework accumulates “enormous complexities” and that coordination between public administrations is “extremely” difficult, which raises costs.
Rigid mechanisms that are not adaptable to new city models” generate “delays and cause an increase in housing prices,” warned Navarro-Rubio.
The representative of the state agency proposed a series of recommendations: convert all protected land that is not of public interest into urban-residential land, limit public action, and enable exceptional mechanisms to expedite the promotion of protected housing in situations of housing emergencies like the current one.
The presentation took place during a conference of the Association of Real Estate Developers of Madrid (Asprima), which has updated its Landcam project for the third consecutive year, a tool that provides real-time information on the status of land in the region and the homes planned on them.
The president of Asprima, Carolina Roca, described 2025 as a “disastrous” year for land development: the forecast was to initiate land for 31,000 homes, but it ended up at 6,000 units. For this year, she assured that the initial forecast was for 32,202 homes and that the closure will be around 29,479, close to the target of 40,000 new construction permits set by the association.
Roca clarified that these figures do not include changes in use from offices to protected housing or the units achieved through increases in buildability and density, two measures from the government of Isabel Díaz Ayuso that she has valued as “positive.”
The vice president of Asprima, Fernando Moliner, estimated that only with the increases in buildability, an additional 25,000 homes will be built compared to the initial projections. Furthermore, according to Landcam data, the Community of Madrid has land to build around 150,000 homes by 2031.
This figure would not cover the anticipated need. Moliner estimated the current deficit at 118,000 properties and added that in the next five years, 228,000 new homes will be created.
If we add the 250,000 homes to the 118,000 deficit, we are talking about 370,000 homes needed. And yet, the homes currently being developed are 150,000. We would have a deficit of 80,000 homes to add to the 118,000 deficit,” stated Moliner.
The vice president of Asprima concluded his remarks by calling for reflection on the order of priorities in a situation that, in his view, has reached the dimension of a “social and emergency problem.”
You may also like
