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Madrid greenlights new urban plan that will double housing in the Southeast

Madrid City Council accelerates the Municipal Strategic Plan to double housing density in the southeast, affecting Valdecarros, Los Berrocales, Los Ahijones, and Los Cerros.

Javier MolinaJavier Molina· · 3 min read

The Governing Board has agreed to the preferred processing of the Municipal Strategic Plan (PEM), which will replace the General Plan of 1997. The new urban model aims to double the housing density in the southeast lands, up to 70 per hectare.

The City Council of Madrid has set the wheels in motion to transform the city's urban landscape. On July 9, the Governing Board approved the preferred processing of the Municipal Strategic Plan (PEM), the instrument that will render the current General Plan of 1997 ineffective. The measure, driven by the Department of Urbanism, Environment, and Mobility, will expedite timelines without bypassing the law, as explained by the Deputy Mayor and municipal spokesperson, Inma Sanz.

The decision is not a mere formality. By declaring the PEM as a priority file, the City Council ensures that the sectoral reports from all involved agencies are issued swiftly. This push is complemented by the support of the Community of Madrid, which already in February classified the plan as of special relevance through its Urban Accelerator. This interdepartmental body will centralise the request and monitoring of reports, and its declaration allows for urgent or preferred processing.

The new urban model: more housing in the southeast

The draft of the PEM, published in December, outlines a Madrid that grows inward. The key lies in the strategic densification of the developable land in the southeast. The 3,380 hectares planned in developments such as Valdecarros, Los Berrocales, Los Ahijones, and Los Cerros would increase from the current 35 homes per hectare to a target of 70. This means doubling the residential capacity in an area that concentrates 71% of the city's pending buildability.

The plan also affects the New Centrality of the East, in the San Blas-Canillejas district, where around 20,000 new homes are expected. The philosophy is clear: to make use of available land to meet housing demand, especially in a context of skyrocketing prices. For the capital's residents, this means that in the coming years they will see how the vacant lots in the southeast fill up with cranes and new blocks.

Timelines and next steps

The City Council plans to initially approve the PEM by early 2027. Until then, the file will be processed through the fast track, but with all guarantees. The Urban Accelerator will act as a single window for reports from various administrations, which should prevent the classic bureaucratic bottlenecks. For Madrid residents interested in acquiring a home in these developments, the message is one of hope, although patience will be key: the first apartments will not be ready before the next decade.

The municipal opposition has already expressed its reservations, criticising that the plan prioritises quantity over quality and that it could overwhelm public services in the area. However, the municipal government of José Luis Martínez-Almeida defends that it is the only way to reduce access to housing costs without expanding the city into the metropolitan crown. Meanwhile, residents of Villaverde, Vallecas, and Vicálvaro are watching closely as the new landscape of their district takes shape.

Javier Molina

Written by

Javier Molina

Redactor

Graduado en ADE por la Carlos III y coleccionista de podcasts de economía que nunca termina. Madrugador, corredor de metro a metro y fan de los gráficos; escribe de economía, empresas y vivienda en Madrid.