Madrid's Plan 18,000: Families Who Paid Mortgages for Decades Still Do Not Own the Land Beneath Their Homes — Big Tech and the digital economy

Thousands of Madrid families face a critical deadline to purchase the land under their homes after decades of mortgage payments. Originating from a municipal program between 1984 and 1997, these residents own the buildings but not the soil, which remains city property for 75 years. With legal protections expiring and recent price hikes causing controversy, affected households must now choose between restricted low-cost options or market rates before the May 2027 deadline.

Thousands of families in Madrid have discovered that despite paying off their mortgages over decades and fulfilling official protection requirements, they do not fully own their homes. The issue stems from Plan 18,000, a municipal protected housing program for cooperatives where the city ceded land parcels under a surface right agreement rather than transferring full ownership. While residents own the structures built on these plots, the ground itself remains property of the Madrid City Council.

Between 1984 and 1997, the municipality allocated land to cooperatives for a period of 75 years. The program encompasses approximately 8,559 protected homes, 2,107 garages and commercial spaces, and 108 parcels involving more than 10,000 titleholders. Under the original design, lower-income families received the land free of charge, while those with higher incomes purchased it at an appraised price. The city argues that the free allocation was tailored to family capacities and functionally equivalent to a zero-cost sale over the long term. However, legal frameworks dictate that once the 75-year period expires, the landowner acquires the building without compensating the residents.

For thirty years, attempts to resolve this administrative labyrinth have faced repeated obstacles. Since 1992, the city offered various schemes for neighbors to buy the land, but many failed due to requirements that all residents in a block must agree to the sale. A single dissenting vote could block an entire promotion. In December 2017, a unanimous plenary approved a new offer with lower prices, but legal advisors subsequently rejected it. By July 2020, political groups signed the Villa Agreements, which prohibited the sale of public land or protected housing to prevent investment funds from acquiring assets, inadvertently complicating matters for these residents.

Tensions escalated in early 2023 when the city launched an offer for a limited number of parcels at market prices, which were five times higher than previous proposals. In some cases, such as in Ciudad Lineal, individual quotas jumped from roughly 29,500 euros to over 241,000 euros. Following public outcry and political pressure, the city withdrew this offer in April 2023 just before municipal elections. The affected residents were subsequently removed from the Villa Agreements, though this did not guarantee a solution.

As of January 24, 2024, new conditions established by municipal bulletin 9.556 provide three options for surface right holders. Residents can purchase the land at a reduced price based on protected housing maximums, which can lower costs significantly but imposes a 15-year restriction on resale prices. Alternatively, they can buy at market rates, a path available for garages and commercial spaces that were never protected, allowing for future profit. A third option is to take no action, though this leaves the property subject to eventual reversion to the city without compensation upon the expiration of the 75-year term.

The pricing mechanism relies on maximums set by the Madrid Community, which had remained static since 2008 before being updated in February 2024. These figures are now reviewed annually, with the latest revision occurring in January 2026. Because the city values the quota at the time of application, delaying the purchase results in higher costs. The deadline for residents to decide is set for May 31, 2027, coinciding closely with municipal elections scheduled for May 23, 2027. Any extension would depend on the outcome of those elections.

The situation has created significant challenges for vulnerable groups, including retirees who have just finished paying their mortgages but cannot secure new loans from banks to purchase the land. The Platform representing these families claims to have 3,500 members and over 10,000 affected individuals. They argue that the current formulas are complex and warn that high costs could ruin many lives. While the city maintains that selling public land below market value without anti-resale controls constitutes poor administration, critics contend that the prices remain unaffordable for those who originally benefited from the program's social intent.

Sources: Xataka.