Gavia Garden — frequently asked questions

Gavia Garden is a Publicly Protected Housing with Limited Price (VPPL) development under a lease with purchase option, developed through a cooperative. It is a model distinct from a traditional promotion, designed to facilitate access to housing with a more competitive economic positioning.

It means that buyers are members of an entity that drives the project at estimated cost price. Unlike a traditional developer, the cooperative does not include the usual developer margin, which can translate into significant savings compared to the market. In return, members assume the specific operation of a cooperative and possible variations in project cost, always within what is approved by the General Assembly.

During the legal protection period, the home is operated as a lease. The member or designated tenant lives in the home paying the corresponding rent and, once that period ends, the home is declassified and can be allocated or transferred as property according to the scheme provided in the cooperative and in the lease contract.

The model is designed to culminate in acquisition by the member themselves or exercise of the purchase option at the end of the operating period, whether by the member or their tenant.

The development is located in Ensanche de Vallecas, on Calle Entrepeñas, next to green areas and with good connections to services, retail and transport. Set above a large park, close to La Gavia shopping centre, La Gavia Metro and Valdecarros Metro, as well as quick access to the M-45.

All homes include a parking space, storage room, access to shared areas and a fitted kitchen. The project also includes a community room.

Sizes vary by typology. As a guide, 1-bedroom homes have around 44 m² of usable interior space, 2-bedroom homes are around 61–66 m² usable and 3-bedroom homes range approximately between 73 and 80 m² usable, depending on layout and whether they include a terrace.

The forecast places completion and the start of the operating phase in 2029, after an estimated construction period of around 25 months. As with any real estate development, this is an indicative forecast subject to licences, administrative milestones and construction progress.

Yes, there is some room for adjustment while the project is in a preliminary phase and before final processing of the building licence. It was explained in the meeting that, having its own architecture department, certain configurations could be assessed for adaptation if the cooperative considers it appropriate.

Whoever is to be the tenant of the home must meet the access requirements for protected housing applicable at that time. As a guide, the final tenant must meet VPPL protected housing requirements:

• Not owning another home in Spain
• Household income below 7.5 times IPREM (approx. €78,000/year per household unit)
• Registered in the Community of Madrid
• Over 18 with legal residence in Spain

No. The member can be the tenant themselves, can assign the home to a family member or can designate a third party who meets VPPL requirements. What matters is that the person who lives in the home during the lease phase does meet those access conditions.

The final occupant must reside in the home. However, the member does not have to be the same person as the tenant, as they can designate another person in accordance with the Internal Regulations and the legal requirements of the model.

Yes, provided the designated person strictly meets protected housing access requirements. This is one of the key points of the model, as it allows flexibility for the member within the legal framework of the development.

Yes. The model expressly allows the member to designate a family member as tenant, provided they meet the applicable requirements. In addition, there are succession or subrogation mechanisms regulated in the Internal Regulations for specific cases.

The economic process is structured in several phases. The member makes the following contributions:

• Share capital: €1,000 (does not reduce the home price and is not subject to VAT)
• Initial contribution of the estimated home cost when buying the land, according to the chosen payment option (see below)
• Monthly instalments during construction (approx. 25 instalments), according to the chosen option
• Remaining amount at allocation, in year 16

There are currently three payment options:

• Option A — Original model: 30% down payment when buying the land + 10% in instalments during construction (25 months). Total contributed before delivery: 40% of estimated cost.
• Option B.1 — Reduced down payment (new): 20% down payment when buying the land + 20% in instalments during construction (25 months). Total contributed before delivery: 40% of estimated cost, with lower initial outlay.
• Option B.2 — Special conditions: 20% down payment when buying the land + 10% in instalments during construction, plus an additional 10% under agreed conditions. For profiles with a specific situation who wish to explore personalised options, contact us directly at info@gaviagarden.com.

10% VAT applies to both the initial payment linked to the home and the monthly construction instalments, as it is new-build work. The €1,000 share capital is not subject to VAT.

Rent is determined according to the applicable protected housing module and the usable area of the home. It is not free-market rent, but a regulated price within the VPPL lease framework.

Under the structure presented, no periodic extraordinary member contributions are foreseen during the operating phase. The logic of the model is that rent paid by the tenant covers loan amortisation and costs linked to the home, including interest, property tax and recoverable community charges.

If the tenant is the member themselves, yes. Part of the economic flow generated during the lease phase is allocated to loan amortisation, thereby reducing the amount pending at final allocation or purchase. If the member is not the tenant, the amortised portion will be returned to them.

The member can propose the purchase option at cost price or market value, depending on the intended use of the home. The cost-price scheme makes sense when reserving for oneself or a family member; market value may be relevant for estate or investment approaches.

Once the 40% contributed before delivery (under any of the three options) and the portion amortised during operation (if the member is the tenant) are deducted, the pending amount would be approximately €38,700 for a 1-bedroom home, €92,100 for a 2-bedroom home and €120,100 for a 3-bedroom home. These are estimated figures subject to the project's actual evolution.

As it is a cooperative, cost is not a fixed and immovable price from the outset. If there were budget deviations, these would be approved by the cooperative, but could be financed so that the member faces them at final deed signing, either in cash or by mortgage. However, the construction contract will be at fixed price and the cooperative benefits from the manager's extensive experience to bring the project to a successful conclusion.

If savings, surpluses or remaining balances existed when the cooperative is wound up, these would revert to members according to each member's participation quota approved by the General Assembly.

If the minimum volume necessary for the project to proceed and the land to be purchased were not reached, the forecast is full refund of amounts contributed. Contributions are protected and the project needs a minimum level of sales to proceed normally.

Yes. Amounts paid on account will be protected from the initial disbursement until the end of construction, through the corresponding guarantee mechanisms, including deposit insurance or bond, which is further reinforced with voluntary insurance in the pre-construction phase.

The risk is very low. The operation relies on a specific qualification and legal framework. Once the corresponding qualification is obtained, the project's conditions are protected by the applicable regulations in force at that time.

During that period the cooperative is the owner, and therefore the cooperative must bring claims against the contractor, project manager or building agents under the Building Regulation Act. In practice, this means members, through the cooperative's governing bodies, will decide how to act in defence of their interests.

No. In case of exit, the usual procedure would be to request withdrawal from the cooperative so that the place is taken by a new member, who reimburses the amounts according to internal procedure and what is provided in the bylaws and regulations.

It does not affect other members. The member holding that home is economically responsible to the cooperative for their tenant's conduct and obligations. If non-payment occurs, the member must respond, assume associated costs and, where applicable, initiate the corresponding eviction or regularisation process.

If the member does not cover the damage caused by non-payment or fails to meet their economic obligations, they may face serious internal measures, including expulsion from the cooperative, with the consequences provided in the corporate documentation.

In addition to monthly rent, the tenant pays the community fee.

Yes. Once the protection period ends and declassification takes place, the home enters the free market and is no longer subject to protected-housing limitations.

Decisions are made by the cooperative, not Momentum. Members participate through the General Assembly and the Governing Council, and these bodies approve relevant matters such as budgets, contracts or certain strategic decisions.

Momentum acts as manager and technical, legal, financial and operational advisor.

Yes. In addition to the bylaws, the project has Internal Regulations that develop aspects specific to the model, such as the order of home selection, the relationship between member and tenant, and other operational and coexistence elements.

The cooperative is subject to legal anti-money laundering obligations. Therefore, each member must provide documentation proving identity, ownership and source of funds, such as savings statements, tax returns, bank certificates or equivalent documents. This control is not optional: without satisfactory completion, cooperative membership cannot be signed.

The Internal Regulations provide mechanisms for long-term situations such as death, succession, unforeseen inability to pay or justified withdrawal, so there is a clear framework to resolve these cases.

The preliminary phase is especially sensitive because it concentrates key milestones such as member recruitment, home selection, documentation review, AML compliance, signing of the membership contract and land purchase. In addition, the project must fit within the applicable time window for change of use and the corresponding urban planning processing.

1. Submit the admission application form together with proof of payment of €1,000 share capital.
2. The cooperative will assign the selection order according to the exact time of receipt of the email with complete documentation.
3. Home selection will take place on dates communicated by the cooperative according to the official calendar.
4. The Anti-Money Laundering process must then be completed and the membership contract signed.
5. Finally, the initial contribution for land purchase must be made, according to the chosen payment option (A, B.1 or B.2).

If the minimum sales threshold for land purchase were not reached, the project would not continue and contributed amounts would be refunded. If the sales level were sufficient to start, the cooperative could continue selling remaining places in the following months.