The Campamento Plan: a new neighborhood in Madrid with 98% affordable apartments

Spain is suffering from a serious housing shortage, the epicenter of which is the meager existing public housing stock, which barely accounts for 3.4% on average. In large urban areas and tourist zones, government-owned properties occupy an even smaller percentage. With plans to expand, the government is finalizing the start of construction on what will be a new neighborhood in southwest Madrid. Called Nuevo Barrio Campamento, it is located on a former military barracks. The objective of its construction is clear: to lower the price of homes located about twenty minutes from Plaza de España by protecting most of the properties to be built.

Campamento is, at its core, a unique experiment in Spain. It's the only large plot of land located relatively centrally in a European city available for the construction of thousands of homes. The land where nearly 11,000 apartments will initially be built is now growing weeds. But years ago, armored vehicles belonging to the armed forces traveled on that land. What's more, the new neighborhood that the capital will have is considered a historic site, as the trials for the February 23rd coup d'état took place there, and many years ago, troops led by General Varela attempted to enter Madrid during the Civil War.

The former military zone (a barracks and some military facilities still exist today) will give way in the coming years to a 21st-century neighborhood. Operation Campamento began to take shape in 1989, when an agreement was signed between the Ministry of Defense, the Community of Madrid, and the City Council, stipulating that, as military activity was phased out, the land would be repurposed for new uses. But the years passed, and Campamento remains in ruins today. The new planning was approved in 2009, but a partial appeal halted it (the neighborhood is also a victim of the current Land Law). In 2011, there was another attempt to move forward, but the economic crisis halted the plans. Campamento, therefore, has been sleeping the sleep of the righteous for 35 years, until now. The final push was given in 2022, and now the first construction works are being prepared for the end of this year.

"Our goal is to create many 'Camps' throughout Spain," says the director of Sepes

Nuevo Barrio Campamento will be a unique housing project in Spain. The government has proposed building up to 10,700 properties in an initial project, both for rent and for sale, with one feature that makes the project special: virtually all of the properties will be affordable. That is, they will be offered at prices below market prices.

At the moment, a brand-new property in the Campamento area is hard to find. The limited supply is leading to sky-high prices. For example, rent for a 70-square-meter, two-bedroom apartment in the same area could be around €1,000. The new project could reduce that rent by more than half.

A few days ago, the Public Land Business Entity (Sepes), which owns the land after purchasing it from the Ministry of Housing, organized a visit to Nuevo Barrio Campamento with local residents to explain the project. There is some interest in the surrounding neighborhood. "98% of the land is in the hands of Sepes, and this guarantees the affordability of the homes that will be built," explained Leire Iglesias, director of the company that will be the embryo of the new public housing company. The remaining 2% could be at unrestricted prices; this cannot be prevented. The Campamento homes will be arranged around 211 hectares of land, in blocks of between five and eleven stories.

Nearly 11,000 homes will be built in a former military zone where the February 23 trials were held.

Nuevo Barrio Campamento will also be a project that will ensure housing affordability well into the next century, Iglesias announced during the tour of the area. Currently, protected properties in Madrid can be released after fifteen years, which drives up their prices. Sepes, on the other hand, intends to establish 90-year encumbrances in the deeds to guarantee affordable housing prices. This anti-speculation clause will therefore apply until after 2115.

Campamento is a neighborhood model that the Ministry of Housing hopes will be imitated in other parts of the country. "Our goal is to create many Campamentos throughout Spain," said the director of Sepes. The housing trial could be a relief for thousands of middle-class families and young people who want to live in Madrid and could see their housing burdens eased. And if these first tenants prosper, others will be able to enjoy this affordable public housing stock in the future.