Wecity has channelled more than €23.3 million over the last five years in the Community of Madrid, thereby enabling the construction of 1,284 social housing units in the region to revitalise the property sector.
Nationwide, the total volume managed by this organisation for social housing amounts to €26.5 million, corresponding to 1,371 properties. Of this figure, the Community of Madrid accounts for 93% of the activity, while the remainder is distributed between Andalusia, with 4%, and the Basque Country, with 3%.
The injection of private capital has been concentrated mainly on the acquisition of land, an initial phase that often faces restrictions in traditional bank lending. The transactions have been intensively focused on new developments in the south-east of Madrid, specifically in the areas of Los Berrocales, Valdecarros, Los Ahijones and Los Cerros, covering land costs, VAT and the initial phases of construction. Financing activity has also extended to other municipalities in Madrid such as Las Rozas, Brunete, Humanes and Cobeña.
“The figure of 1,284 social housing units in Madrid alone demonstrates that the participatory financing model acts as a bridge between the current supply and demand for affordable housing. wecity’s commitment to social housing solves a twofold problem: on the one hand, we make it viable for developers and co-operatives to launch social housing projects, thereby adding real supply to the market; and on the other, we encourage investors to save through mortgage-backed loans”, said Antonio Mañas, CEO of wecity.
The funds come from a community of investors who participate through mortgage-backed loans, enabling developers and co-operatives to access the initial capital required to meet the construction deadlines for social housing in its various forms. The platform operates as a crowdfunding service provider authorised by the National Securities Market Commission and the European Securities and Markets Authority.
