Granadilla announces 300 affordable rental apartments available in 2024

  • Canarian Weekly
  • 03-01-2024
  • Tenerife
  • Photo Credit: DA
Granadilla announces 300 affordable rental apartments available in 2024

In the midst of a challenging housing scenario with soaring rents and makeshift dwellings popping up in various areas of the south of Tenerife, Granadilla has reason to celebrate. According to forecasts, the Council are set to add 300 affordable rental apartments, priced at a maximum of 5.5 euros per square metre, or 6.5 euros with a garage and store room, with rents not expected to exceed 30% of tenants' incomes.

The announcement came yesterday (Tuesday) from Orion Rental, the fund that acquired the properties, and was confirmed by the Granadilla de Abona City Council. Orion Rental secured the properties through a tender, obtaining a housing development that had been abandoned during the 2008 real estate crisis and was under the control of Sareb, the so-called "bad bank" responsible for managing toxic assets acquired by the government after bailouts.

Construction will Begin in Two to Three Months

Enrique Guerra, the General Director of Private Equity, Orion Rental's parent company, explained that the properties consist of a total of 294 units spread across eight buildings.

"Two of these buildings are currently 'occupied,' mostly by individuals who were supposed to be the owners until the crisis halted construction. We are committed to supporting them while the other six buildings are renovated. Subsequently, we will relocate them to the completed units until their original homes are finished, after which they can return," Guerra said.

The total investment in acquiring the buildings amounted to 7,360,500 euros. Guerra added, "Now the focus is on adapting them. We already have the necessary permits. We estimate that construction can commence in about two or three months and be completed before the end of the year."

Guerra emphasized that the conditions for classifying these homes as affordable rentals are regulated by law, both in terms of price per square metre and the maximum percentage of tenants' incomes. The target demographic for these rentals is the working middle class, a section of people who genuinely require such housing.

"This is not just wishful thinking," he assured. "It's evident that the tourism sector needs workers, who are currently in short supply, and these individuals should live nearby in areas with essential services and infrastructure." This is precisely the case for the Granadilla town centre, where the properties are located near the municipal pool in the Los Hinojeros area.

Affordable Living Costs

Based on calculations derived from the company's figures, the rent for a 60-square-metre apartment would be 330 euros without a garage and storeroom, and 390 euros with. It's important to note that current rents in the area hover around 700 euros a month for similar properties.

Municipal sources confirmed the data and highlighted that the first meeting between company representatives and Granadilla Mayor, Jennifer Miranda, and Urban Planning Councillor, Óscar Delgado, took place in August of this year to present the project.

"Our main concern was what would happen to those currently living in part of the buildings. However, we are reassured by the company's intention to include them in the property transaction with Sareb. The Granadilla City Council has jurisdiction over urban planning aspects, and it is great news to incorporate affordable rental housing because it is much needed," they added.

Regarding the area's urban development, such as pavements and lighting, the council clarified that "the commitment is for the buyers, Private Equity, to take on these responsibilities."