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Cooperatives revitalize the Spanish real estate market

A guest blog post by our member, CONCOVI

Madrid, 23 February 2017
Alfonso Vázquez Fraile, the President of CONCOVI from the very beginning
Alfonso Vázquez Fraile, the President of CONCOVI from the very beginning

Housing cooperatives in Spain have become one of the main players that are reactivating the Spanish real estate market. 2016 has indeed been the year in which the crisis was left behind, although the sector is still recovering...

Housing cooperatives have contributed a lot to this recovery, which far from their traditional weight in the development of price-controlled housing, have positioned themselves as one of the main players in residential development. The percentage has been inverted: 70% non-price controlled promotion and 30% regulated housing, due to costs reasons. The development of commercial housing has a lower cost than the respective of regulated Housing as well as fewer legal implications.  

The Region of Madrid continues to stand out as the one with the most significantreal estate activity, both concerning new construction, renovation of houses, buildings and regeneration of neighborhoods.

In Spain, in December 2016 the Housing Plan 2013-2016 was extended for one more year, until December 31st 2017 as the new plan was not approved. Since 1954 CONCOVI has been consulted by the Government to collaborate closely in drafting of the State Housing Plans, since it is considered as a fundamental social agent. CONCOVI is currently contributing to the new Plan 2018-2021 through a document known as ‘The 12 CONCOVI proposals for the Promotion of Urban Regeneration and Renewal’. The Housing Minister, Iñigo de la Serna, has pointed out that during this year 870 million euros will be allocated for this extension.

The cooperative sector expects both economic aid and a more appropriate tax treatment in the near future that will help "increase the number of rental properties, but especially to boost refurbishment". Moreover, in order to reach pre-crisis levels, it is necessary for the middle and working class to obtain a more reasonable tax treatment, to streamline the administrative procedures for mortgage loans and to facilitate the acquisition of developed land.

Refurbihment is the other cornerstone on which housing cooperatives are based as according to Concovi, 234,000 homes built before 1981 in Madrid area are in the spotlight. Complying with regulations is a challenge for these activities, too.

From CONCOVI we want to offer our accumulated experience over many years to HE. The document transferred to the Government of Spain "The 12 proposals of CONCOVI to the Promotion of Urban Regeneration and Renewal" is at their disposal to be modestly revised by the EU. We hope it can provide possible solutions or improvements to the socio-economic objective that is being imposed with an evident role: the Social Economy and the Renovation of Cooperative Housing.

Source: Revista Metros2 (Soledad García Garrido)

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