The public land under the Vive Plan in Madrid is expected to yield a 6.8% return to selected private companies, translating into estimated profits of 4.8 billion euros over the project's lifespan.
The Vive Plan, initiated during the administration of Isabel Díaz Ayuso, aims to provide affordable rentals on public land in Madrid. However, this ambitious project comes with significant financial implications, as the companies involved are projected to achieve a substantial average return of 6.8%. It is anticipated that the net profits for these firms could soar to an estimated 4.857 billion euros across all public parcels over the 50 to 75 year exploitation period.
Critics and analysts point out that while the intentions of the Vive Plan may be to alleviate housing issues, the involvement of private corporations raises concerns about the true affordability of rents. The public administration describes the profit margins as 'moderate', but the substantial returns suggest a complex balance between public service and private gain, leading to skepticism about the commitment to truly affordable housing solutions.
The public documentation reviewed by EL PAÍS reveals the economic stakes involved, underlining a possible conflict between political promises and the financial realities faced by participants in the housing market. As the project unfolds, the accountability and outcomes of this public-private partnership will be closely scrutinized by both citizens and policymakers.
