Spain's protection against the crisis lies in a high level of home ownership - Francisco Pérez (Kulmyá)

The company Culmia, which was previously owned by Banco Sabadell and is now owned by the American fund Oaktree, is betting on public-private partnerships for further development. In such plans, the government provides land for private companies to operate on lease at below-market prices.

“We are building 1,763 residential units in the first phase of the Vive Plan in Madrid and 1,137 residential units in the second phase. The construction of the first building in Alcorcón will be completed in November, and the first tenants are expected to move in by the end of 2024. We have also won two contracts to build nearly 1,000 residential units in a competition organized by the Madrid City Council and have applied for a public-private partnership in Málaga,” says Francisco Pérez, CEO of Culmia, in an interview with EL PERIÓDICO DE ESPAÑA from the Prensa Ibérica group.

The promoter believes that affordable rental housing has great potential in Spain. "We are faced with the task of effectively organizing this market so that it can thrive in competitions, urban management, and financing, where 4 billion euros from European funds will help. We will continue to participate in competitions. We will also try to promote this in Barcelona and its surroundings," adds Francisco Pérez.

As the executive director confirms, they are ready to offer the third phase of the Vive Plan, which will be subsidized by European funds, and the Vienna Plan, Sareb's project to build 10,000-15,000 rental housing units on the company's land, announced by the government president Pedro Sánchez during the local and regional election campaign.

Francisco Pérez believes that the current situation in the housing market requires the establishment of a State Housing Pact: "We need to reach a long-term agreement in the housing sector to address the existing demand, otherwise we will be hopping from one foot to the other."

The head of Culmia believes that the demand for social housing is low, but its development should be handled by the government administration.

The executive director of the promoter also does not see the point in reducing the weight of private property: "Spain successfully copes with crises because many people own their homes without a mortgage. Out of 100% of households, about 47% are mortgage-free owners, while 15% live in rental properties. The percentage of those who pay a mortgage or rent is very small compared to other countries, and this is our advantage."

Peres gives the example of a pensioner: "With a pension of 1,200 euros, if you own your home and have regular expenses, you manage. But if your rent is 500 euros and it gets raised to 800, what do you do?"

Finally, the CEO of Culmia is asking the future government that will emerge after the elections on June 23 to resume the review of the Land Law, which Ana Pardo de Vera proposed as Secretary of State for Transport, Mobility, and the Urban Agenda, before she was relieved of her position. "We need a law that ensures that in the event of a court ruling to suspend development, there are mechanisms in place to find a solution. Land projects are the future of our economic activity," he concludes.