With becoming part of the European Union in 1986 and a more and more liberal immigration
policy, Madrid became a magnet for all sorts of people withing in the 90s and it
still is today. A result of this boom was the increasing demand for housing, further
resulting in real estate prices skyrocketing from the mid of the 90s on. In the
following seven years house prizes within Madrid have doubled. Since the average
wage did not nearly catch up with this speed and the still growing demand for cheap
houses, within the satellite cities around Madrid cranes have been popping up like
mushrooms.
Although this real estate boom is happening everywhere in Spain, Madrid is its very
center.
Within the wild years people were buying 4 apartments on credit in an apartment
block that wasn't even build - just by looking at the architects blueprint. Once
this building was finished people would sell three of their apartments and by the
profit they made out of this, they could pay back their credit - so they got the
fourth, their own, apartment for free.
Besides these apartment blocks, that seem to be build from exactly the same blueprint, there is also another observation that can be made. Since a boom does always involve some people who earn a lot of money, and because Madrid has a lot of rich football players and other stars, there is a high demand for a posh alternative to these apartment blocks. This is why in the North and Northwest of Madrid whole villages consisting purely of high-priced villas have been built completly from scratch. Very often these villages are so called "gated communities" were a security service ensures that no strangers are allowed to enter.
These
apartment buildings are actually from the 70s, where, within a first boom, cities
like Leganés and Getafe have been build from scratch around an older village.
