Madrid’s governing board has given initial approval to the city’s draft budget for 2027, which totals 6,901 million euros, 323.3 million more than in 2026 and an increase of 4.9%. Including municipal companies, the budget reaches 8,103 million euros. Housing receives the largest increase, in a city whose registered population is nearly 3.5 million, 231,151 more than in 2019.
Where the money goes
Spending rises in every department except Public Works and Facilities, which falls by 8.9% to 588.4 million euros as the term’s major investment projects are completed. Social spending reaches 1,355 million euros, the highest in the historical series and 85 million more than in 2026, equal to 387 euros per inhabitant. Investment amounts to 678 million euros. The property tax (IBI) rate is cut to the legal minimum of 0.4%, part of a tax reduction worth 31.2 million euros. Municipal debt is set at 1,497 million euros, the lowest level in 22 years.
Housing gets the largest increase
The Housing Policy department’s budget rises by 10%, more than double the budget average, to 248 million euros. The municipal contribution to the housing company EMVS Madrid increases to 150.5 million euros, 13.3% more than in 2026, bringing the company’s budget to 199.60 million euros. This will allow EMVS Madrid to handle close to 9,000 homes that will be in some phase of construction or tender during 2027.
| Item | Scale in 2027 |
|---|---|
| Developments under way | 29, with almost 5,100 homes |
| Plan Suma Vivienda, first two phases | 16 developments, about 2,500 homes |
| Plan Suma Vivienda, third phase (to be contracted) | more than 1,400 affordable rental homes |
| Planned construction starts | almost 2,000 homes in Vicálvaro, Barajas, Tetuán and Arganzuela |
The company, which now has more than 10,000 homes, is expected to end 2027 with more than 10,500. Separately, the large development areas in the southeast are expected to receive more than 100,000 new homes, most of them protected.
Next steps
After approval by the governing board, the draft goes through a period of objections and amendments. It will then be submitted to the city council plenary in December for final approval and is due to enter into force on 1 January.