MADRID – Madrid Nuevo Norte is the largest urban renewal plan in Europe to date. Moreover, it should give a real boost to the Spanish economy. The project involves a total investment of €25,197 billion and will create no fewer than 350 thousand new jobs.
These figures were released on Tuesday by real estate developer Distrito Castella Norte, in partnership with the Autonomous University of Madrid (UAM). Of the more than €25 billion, over €14 million has been invested in real estate. Another €3,765 billion has been invested in the purchase of land. And more than €4 billion in construction projects, with €1,469 billion in infrastructure. The government is spending a further €488 million on facilities and €1,325 billion on infrastructure. This will include the refurbishment of Chamartín station, which will become one of the main public transport hubs.
350 thousand new jobs
Apart from the almost 350 thousand new jobs, the investments are expected to generate more than €17.8 billion for the Spanish economy. More than 201,000 jobs will become available for the construction of the project. And, furthermore, the remaining jobs will be permanent once the project is completed. Madrid Nuevo Norte will be transformed into the new business district of the Spanish capital by then.
For the Spanish government, the entire project brings in about €5,868 billion in tax money; 40% comes from indirect taxes, 33% from social contributions, 14% from payroll tax, and another 12% from business tax. Net, i.e. after deducting the investment in the infrastructure, about €4 billion remains. According to the forecast, Madrid Nuevo Norte means an increase in gross domestic product (GDP) of €15.2 billion within 24 years.
Green light
The first impetus for the ambitious project dates back to 1993. This had the aim of making the north of the city more accessible by public transport. After numerous adjustments and delays, the green light was finally given last year.
The entire project will cover an area of 2.3 million square metres, on which 10,500 homes will be built in addition to offices. Parks are also being built and the tallest building in Spain will be built in the new district, with a height of more than 300 metres.
