Madrid proposes €6,901 million budget with housing boost

Madrid City Council gave initial approval on Thursday to a €6,901 million budget plan for 2027. Mayor José Luis Martínez-Almeida said housing and public services were key aims.

The draft is the last budget of Almeida's second term. It is 4.9% higher than the 2026 plan, a rise of €323.3 million.

The council expects final approval in December. If passed, the budget will take effect on 1 January 2027.

More money for public homes

Housing policy would receive €248.09 million, up 10% in a year. The money would support public rental homes, repairs and work to renew local areas.

The city housing company, EMVS Madrid, would have €199.60 million. That is 14.4% more than in 2026.

EMVS plans to start almost 2,000 homes during 2027. The projects are in Vicálvaro, Barajas, Tetuán and Arganzuela.

The council wants the public housing stock to pass 10,500 homes before 2028. It also plans work on almost 9,000 homes at different building or tender stages during 2027.

Care and local services

Social spending would reach €1,355 million. The council says that is one euro in every five of its spending outside finance costs.

Home help would receive €352 million. The service already supports more than 155,000 people in Madrid.

Advanced remote care would become free for people over 85 from January 2027. The council also plans to offer more than 2,500 places for homeless people for the first time.

The districts would share €1,111 million. Plans include 43 new sites such as libraries, sports centres and social spaces. More than 20 are due to finish next year.

Projects enter their final year

The council plans €678 million of direct project spending. The total rises to €1,001 million when city-owned firms are included.

The draft lists 710 investment plans. Major work due to finish in 2027 includes the A-5 tunnel, the final stretch of Castellana and the cover over the M-30 at Ventas.

The works budget is the only main area set to fall. It drops 8.9% to €588.4 million as several large schemes near completion.

Urban planning, the environment and transport would receive €2,101 million, up 5.7%. That includes work on large south-east areas where more than 100,000 homes are planned.

Street cleaning and the Selur urgent cleaning service would receive €650 million. Culture, tourism and sport would get €268.27 million, a rise of 5.6%.

Debt set to fall

The council says its debt will fall to €1,497 million, the lowest level in 22 years. It says debt dropped 45% between 2018 and 2026.

The plan also reflects a cut in the IBI property tax rate to the legal floor of 0.4%. It includes a change to the rubbish charge.

The figures remain a proposal until the council completes the approval process. Almeida said the plan was needed to deal with residents' problems.

Sources: ABC, Idealista and 20minutos.