Madrid authorities are facing a major challenge: by 2039, the region’s population is expected to grow by one million people. Forecasts put the number of residents at 8.1 million, threatening the city’s traditional way of life and its surroundings. Residents are already struggling to find affordable housing, and the gap in living standards between the north and south of the region is becoming increasingly apparent.
The problem is compounded by the fact that both transport and healthcare infrastructure are often operating at full capacity. Housing is the main concern for Spaniards, and the situation in Madrid is particularly acute. While these challenges are typical for many large cities, Madrid faces an added difficulty due to a limited number of available plots for development. Experts estimate that within ten years, there may simply be no land left for new housing.
Experts note that the capital has the potential to find solutions, but action must be taken quickly. The gap between incomes and property prices is already making Madrid one of the world’s most expensive cities. More and more residents report being unable to find suitable housing, and the capital ranks 22nd out of 141 major cities in terms of difficulty finding affordable apartments.
The rise in housing prices is driven not only by domestic factors, but also by the steady influx of new residents. Over the past decade, Madrid’s population has grown by nearly 8%, and in some suburbs such as Villalbilla, Arroyomolinos, and Boadilla del Monte, the increase has ranged from 37% to 51%. According to construction companies, about 313,000 new apartments could still be built in the region, but the current pace of construction is far from sufficient. While before 2008, around 40,000 new homes were being built each year, this figure has now dropped to 18,000, which is clearly not enough to meet demand.
To address this situation, experts recommend more actively attracting foreign investment and developing partnerships between the public and private sectors. Additionally, it is necessary to simplify bureaucratic procedures, speed up permit issuance, and revise regulations on the use of vacant land plots. Not only the number of new homes matters, but also their location: new neighborhoods should be comfortable for living, with developed transport, job opportunities, and recreational infrastructure.
Among major projects, Madrid Nuevo Norte stands out, where 10,500 apartments are planned to be built over the next 25 years, some of which will become municipal property. This approach, based on close cooperation with city authorities and the involvement of foreign investors, could serve as an example for other neighborhoods.
However, even with available land and investment, the industry faces a shortage of workers. Construction companies lack specialists, and even if they could be found, the question remains where they would live given the housing shortage.
As a temporary solution, so-called ‘flexible’ apartments are being considered, which are rented out for several weeks or months. This may help those coming to Madrid for a short time, but it does not resolve the issue for permanent residents. Authorities and businesses agree: the capital will continue to grow, and only coordinated action will determine how comfortable life will be for both new and long-time residents.
