Invest in new housing in Madrid

We return to Madrid to present a new residential development project. We will open it for funding next Tuesday, October 8 at 4 p.m. (UTC+2). Interested? Here are all the details so you can invest in new housing in Madrid.

The López de Hoyos project involves the development of a new residential building with between 22 and 24 apartments – the basic project is not yet finalized – located at 245 López de Hoyos Street in Madrid. The apartments will range from one to three bedrooms, each with a parking space, storage room, communal swimming pool, private pools for the ground-floor units, landscaped common areas, a community room, and a gym. In addition to the high quality of the development, the location stands out as it is in one of Madrid’s central residential neighborhoods.

Regarding the developer, it’s a familiar face. Grupo Abauco has financed four projects with us and has also managed the Narváez project. We are well aware of their professionalism, backed by more than 15 years of experience in the residential and hotel sectors in Spain and Germany.

Preferential returns for investors

This project follows a capital gains strategy: Urbanitae investors will enter the project’s equity alongside the developer to build the 22-24 apartments. In total, they will contribute €3,835,000, which will go toward purchasing the land and covering the project’s initial costs until the developer loan is obtained.

Grupo Abauco holds an exclusive purchase option for the acquisition of the land, which is debt-free. The plan is to apply for a building permit in December and obtain it in the third quarter of 2025. The developer will contribute around 27% of the total investment capital.

One of the project’s key strengths is that we have agreed with the developer on a preferential return scheme for Urbanitae investors. Specifically, the developer will not be able to recover their equity or receive any profits until Urbanitae investors have received a 15% annual return (IRR) on their investment. To calculate the estimated return, you can use the formula (Revenue Forecast – Cost Estimate) / Total Equity, with the data provided in the project’s details.

We also believe there is potential for improvement in both the expected timelines and the sales prices set by Abauco. Additionally, there is a possibility of obtaining a recap for investors once bank financing is secured.

In this video, the developer and our Real Estate Director, Sergio Arana, explain the specifics of the López de Hoyos project.