Madrid City Council has ceded 19 public plots, valued at €87.8 million, for new elderly care homes. Private companies will manage these centers for up to 75 years. The move has sparked criticism over the long-term use of public land.
Madrid City Council has approved the transfer of 19 municipal plots, totaling nearly 200,000 square meters and valued at €87.8 million, to the regional government for the construction of new elderly care homes. The initiative, led by Isabel Díaz Ayuso, aims to create 40 public-private residences across the region, with private companies building and operating the centers for decades under a concession model similar to that used in concerted education.
The transferred plots are spread across 13 districts of the capital and represent almost half of the sites planned for the project. According to information obtained by EL PAÍS, the official valuation reflects only the accounting value in the municipal inventory, not the market or cadastral value. For example, the first plot up for tender, located on Calle Oslo, is valued by the city at €648,197, while its cadastral value is €2 million. This suggests the real worth of the entire land package could be significantly higher.
Under the terms of the plan, the regional government will grant long-term concessions—up to 75 years—to private operators, who will construct and manage the care homes. These companies will offer both public and private places, with the majority of spots reserved for private clients at market rates. Additional revenue streams, such as parking and cafeteria services, are also anticipated. The smallest plot measures 4,010 square meters and is valued at €430,231, while the largest, in Fuencarral-El Pardo near La Moraleja, spans 20,000 square meters and is valued at €14.1 million.
The city council states that the land was transferred following a request from the regional Department of Family, Youth and Social Affairs, as part of the 2024–2030 Center Construction Plan. Most of the plots are unused municipal land and have been ceded free of charge. The model, which began in 2019, involves granting 100 public plots for private operation, not only for care homes but also for concerted schools and affordable rental housing.
The first contract, for the Calle Oslo site in San Blas Canillejas, sets the template for the rest. The winning company will manage 80 public places (60 residential, 20 day center) at a fixed price set by the region, and 120 private places (90 residential, 30 day center) at market rates. The concession will last 70 years, extendable to 75. The operator is expected to earn up to €2 million annually from public places, with additional income from private clients and extra services. The company will not pay a fee for using the public land, as the obligation to reserve public places is considered compensation.
The project has drawn sharp criticism from opposition parties. Ana Lima of the PSOE argues that the model favors those with higher pensions and assets, leaving others on waiting lists for public places. She also warns that private operators may cut costs, affecting staff ratios and service quality. Mar Barberán of Más Madrid describes the plan as a "scandal" and warns of the loss of public assets and the risk of deteriorating care standards. Both highlight concerns that the long-term concessions could undermine the city’s ability to provide quality public care in the future.
Ayuso’s goal is to have all 40 residences operational by 2030. If the timeline is met, the public land transferred in Madrid alone will remain under private management until at least 2097. The debate over the use of public assets for private profit echoes similar controversies in other Spanish regions, such as Catalonia, where authorities have invested heavily to improve access to social benefits for vulnerable groups, as seen in initiatives like Catalonia’s €30 million program to reach families missing out on aid.
For context, Spain’s population is aging rapidly, with over 20% of residents now aged 65 or older. Demand for elderly care is expected to rise sharply in the coming years. The public-private partnership model is increasingly used in Spain to expand social infrastructure, but it remains controversial due to concerns over long-term public control, service quality, and equitable access. The outcome of Madrid’s ambitious plan will likely influence similar projects across the country.
