Housing cooperatives go where developers cannot go, and after the housing bubble burst, the entire housing industry went through difficult times, because these companies always managed to close the deal on those few developments that were available.
Once the bubble had burst, there was no way real estate developers could possibly compete with cooperatives’ activities.
Today’s article by ShMadrid will tell you a bit more.
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What you need to know about Madrid’s housing cooperatives in 2020
The real estate market has stabilized at the moment, and prices of land are rising. This does not, however, mean that buyers are willing to pay an excessive price, and that is why cooperatives are bouncing back again with renewed strength.
Not that long ago, many property developers were on the hunt for a piece of terrain on Calle de los Astros, which was owned by the Fábrica Nacional de Moneda y Timbre. At the auction, however, a cooperative beat everyone to it.
The site is located near Parque del Retiro and was sold for 33.5 million euros. The person who acquired the terrain was a manager at a cooperative who does only one thing, and that is hunt for new land to develop in Madrid.
As you know, the market for property development sites is scarce, as not many plots are available in big cities. So as soon as a terrain comes up for auction, cooperatives go through great lengths to buy it just before main development companies in the country get the chance.
Another example is cooperative Sueños del Cañaveral. It managed to position itself in first place in a public auction, in order to acquire an undeveloped plot in El Cañaveral. Although the terrain was very popular, it is Sueños del Cañaveral who bought and will build on it.
They are planning to construct 72 subsidized houses at a limited price. These properties will include storage rooms, sports facilities, a swimming pool and spaces for businesses.
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If you would like to learn more on housing development plans in Madrid by cooperatives, visit www.viviendasencooperativa.com. One of the new plans for construction on the website consists of 13 apartments being built in the Madrid Centro.
This new building will be in an urban setting, close to the old town and only a few steps from the neighbourhood of Atocha. The apartments will have 2 or 3 bedrooms, a storage room and parking. All apartment residents can enjoy a garden, and there is even a swimming pool.
Another development plan, not too far from this one, is in Ensanche de Barajas. This plan consists of 36 apartments and is only several minutes away from metro station Barajas. You can also enjoy the bus network in this neighbourhood. This area is perfect for families, as it is near green zones, parks, schools, supermarkets and public services.
In addition to previous characteristics, residents can also profit from communal areas, like a playground for children, a paddle tennis court and two swimming pools. If you would like to apply for this development plan, however, you are required to pay 1000 euros upon registration.
The organization of a cooperative is becoming more and more popular in our society. It is truly an amazing way of having access to housing, at an affordable cost. If you would compare the total cost to the price construction firms and property developers will charge, you are better off and can save considerably with a cooperative.
What is even more interesting, is that affordable prices do not lead to low quality housing at all! It is quite the opposite, because the most well-known cooperatives build high-quality housing.
The result of it all is that property development agencies are now becoming more cautious when buying new land. In addition to this, banks are more demanding when deciding to grant financing, and this is why sales have actually decreased.
Anyway, anyone who buys a home through a cooperative must always remember that he himself will be the one carrying the developer’s risk.
Do you have other interesting facts about housing cooperatives in Madrid in 2020?
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