Alessio Ghirlanda
A NEW Madrid city council scheme will make it easier for ‘young’ property buyers to purchase their first home in Spain’s capital.
Mayor Isabel Díaz Ayuso announced that home seekers under 50 would gain access to mortgage loans covering up to 100% of the purchase price for both newly-built and second-hand homes.
This means that, for most applicants, no down payment will be required to qualify for a mortgage. Down payments typically amount to around 20% in Spain, often locking young buyers out of the housing market.
The scheme is part of a broader 15-point housing package set to roll out between 2026 and 2028. It comes amid a nationwide housing crisis which saw property prices soar by 8.4% in 2024, according to the Instituto Nacional de Estadística.
The Mi Primera Vivienda (‘My First Home’) plan builds on a national government scheme which came into effect in early 2025. Under that programme, buyers under the age of 40 across Spain became eligible for up to 95% mortgage financing for second-hand homes.
Following Ayuso’s review of the plan, however, Madrid residents will be entitled to improved conditions.
Residents with limited savings will now be able to apply for mortgages covering up to 100% of a home’s price if they are under 40, 95% if they are aged 40–45, and 90% if they are 45–50.
Jorge Rodrigo, Madrid’s councillor for housing, transport, and infrastructure, said the plan has already helped over 5,000 young buyers – with a total of eight banks partnering with the city council to support the programme.
The new mortgage scheme aims to alleviate some of the pressures faced by young buyers as Spain’s housing market grapples with ballooning prices, escalating demand, and a shortage of supply.
According to Idealista, the average price per square metre for new homes in Madrid surged to €5,723 in August this year – a 21.3% increase compared with the same month in 2024.
At the same time, the International Monetary Fund estimates that Spain needs to build 550,000 new homes over the next two years to meet demand – but the construction sector is hamstrung by a lack of buildable land and skilled labour.
Madrid’s plan is one of a flurry of provisions aimed at navigating the country through the ongoing crisis.
Earlier this month, Prime Minister Pedro Sánchez proposed tripling Spain’s investment in social housing to €7 billion over the next four years.
In July, the government cracked down on Airbnb-style properties – ordering the removal of more than 65,000 holiday-rental listings across the country.
But Ayuso hopes her new programme will give Madrid a head start.
She said: “In Madrid, 30,000 new households are created every year.
“If we do nothing, we will run out of available land within a decade.”
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