AXA IM Alts, in a joint venture with listed Spanish residential developer Neinor Homes, has acquired a plot of land in Madrid for the development of a c.€110 million residential scheme with strong environmental credentials.
The site has planning consent for 240 high-quality apartments across two buildings of 17 storeys each. The new residential complex will also comprise a comprehensive suite of amenities including swimming pools, a gym and co-working spaces and is due to complete by 2027. Neinor Homes will act as delivery partner.
The scheme is located between Madrid’s northern districts of Puerto de Hierro and Mirasierra and benefits from the regeneration of the local area, which has delivered new green space and amenities for residents. Transport links into the city centre are strong, with seven different bus and metro routes. The project is also in close proximity to the M-30, which offers access to many of the city’s main educational and tourist attractions, including Madrid’s main financial district, the Ciudad Universitaria and the Santiago Bernabéu stadium.
Demand for new homes in Madrid has remained robust despite recent macroeconomic headwinds, but the delivery of new units is constrained by a scarcity of suitable land. The Spanish population, which has been steadily increasing over the past two decades, is projected to continue to grow in the coming years, with the majority of growth concentrated in a small number of markets including Madrid. This population growth, coupled with the undersupply of suitable homes for sale, will lead to an estimated shortfall of 70,000 homes per year nationwide.
Esther Escapa, Head of Real Estate Transactions & Development Iberia, at AXA IM Alts, commented: “Long term demographic and economic trends in Madrid point to continued resilient demand for new homes, while the supply of high-quality new units is acutely limited. This transaction presents an attractive opportunity to address Madrid’s shortage of sustainable, modern build-to-sell accommodation. Partnering with Neinor Homes to leverage our combined investment and development expertise, our joint venture will deliver a high-quality project which caters to demand from Madrid’s young professionals and families for new amenity-led housing in the city’s well-connected northern districts.”
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