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The procedure, started by Alhaurín de la Torre town hall to transfer, free of charge, the ownership of a plot of land valued at around 600,000 euros to be used for the construction of affordable rental housing, has so far been unsuccessful. The idea was to capture the interest of investors willing to build on the plot. However, no bids were received during the tender period, which has prompted the town hall to reopen the process under the same conditions.
Contracting councillor Abel Perea believes that the offer is attractive. The plot is located in the Torrealquería neighbourhood, with buildable area of 2,109.83 square metres, with the possibility to built 40 subsidised homes. "Cheaper than zero cost is impossible and the construction company will have this land for 75 years, after which it will be returned to the municipality," said Perea, adding that the construction process will be exempt from municipal taxes, reflecting the urgency of the housing crisis.
As to the possible causes of the lack of bidders, the councillor believes that it may be due to the general context of rising construction costs. However, Perea has highlighted that the area is uncomplicated to build on, which has been demonstrated by the construction of another social housing complex there.
In contrast, Violeta Aragón, general secretary of the association of builders and developers of Malaga, has pointed to some of the complications that come with municipal promotions and offers. "One of the main problems is that you have to advance the investment, but then you depend on the collection of rent to recover it. Even if all the properties are rented, there might be issues with the payments," she said.
Aragón described what would attract a possible investor to give a chance to a plot of land: the guarantees for recovering the investment usually involve the opportunity to build a large number of homes, which will, in turn, make costs profitable, and a location that will ensure constant interest.
A success story is that of a 759-square-metre plot of land in Torre de Benagalbón in Rincón de la Victoria, where 20 homes at affordable rents will be built. With a contribution of one million euros from the Spanish government, the 1.8-million-euro value of the land did attract a company.
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