A New Chapter for Arcosur: Long-Awaited Development Breaks Ground
After years of stagnation, one of the region’s largest residential projects is moving forward in Zaragoza. The city council, the government of Aragón, construction firms, and Ibercaja bank have signed an agreement aiming to build 17,000 apartments in the Arcosur district over the next decade. This initiative is set to transform the housing landscape in the city’s southwest and give a fresh boost to local infrastructure.
Funding and Housing Allocation: First Phase Details
In the first stage, regional authorities plan to invest €20 million to erect 3,300 units with various forms of assistance. Of these, 1,500 apartments will be built by private developers, 1,000 will go to Ibercaja bank, and another 800 will become municipal property. Over time, as agreed, the developers’ consortium will drive infrastructure development to enable construction of an additional 10,000 apartments. Separate plots have also been designated for 1,500 socially supported units.
Market Impact and Social Considerations
According to city officials, the implementation of this project will partially address the shortage of affordable housing, a pressing issue both in Zaragoza and Aragon as a whole. In the coming years, around 50,000 new jobs are expected to be created, half of which will be permanent. This is especially important for the region’s young residents: according to the municipality, more than 47,000 young people in Aragon—including 30,000 in Zaragoza—face significant challenges starting an independent life due to high prices and limited housing supply.
Price trends: Rising sale and rental costs
Recent data show that over the past year, the average price per square meter of housing in Aragon rose by 3.7% to €1,506. Rents climbed even higher—by 8.1%—approaching historical highs. In Zaragoza itself, home purchase prices jumped 10.9% year-on-year, while rents increased by 8.5%. The current average price per square meter to buy is €2,095, with rentals at €10.9 per square meter.
Outlook and expectations
The first phase of tender procedures is expected to be completed by mid-2026. Authorities and project stakeholders are confident that joint efforts among government bodies, businesses, and financial institutions will accelerate solutions to the housing crisis and foster sustainable urban development. Arcosur, once a symbol of unfinished plans, is now becoming an example of revival and strategic partnership.
