In recent years, the number of price-protected apartments in Madrid has visibly declined. Between 2019 and 2025, nearly 10,000 such units lost their protected status and shifted to the open market. This means their prices are no longer regulated and can now be sold or rented at rates that often far exceed the original amounts.
Regional authorities continue to claim leadership in affordable housing. According to their data, there are more than 25,000 price-controlled apartments in the capital and surrounding areas. However, despite ongoing construction, the total number of such units is decreasing. The reason: the expiration of protection status, after which apartments automatically become regular properties and lose all price restrictions.
Terms and regulations
In Madrid, price-protected apartments retain their status for 10 to 15 years, depending on whether they are rented or sold. After this period, the properties can be sold at market rates. In other regions of Spain, the rules differ. For example, in the País Vasco, protection is permanent, with about 55,000 such apartments. In Catalonia and the Valencian Community, restrictions remain in place for 10 to 30 years, but with additional conditions to prevent full market liberalization.
Madrid, however, takes a different approach. Regional authorities believe that permanent protection leads to the deterioration of homes and neighborhoods. In their view, allowing sales at market prices gives new generations a chance to buy property. Critics, however, argue that this policy fuels speculation and price increases, and makes it easier for investment funds to acquire these properties.
Construction trends
From 2021 to 2023, nearly 11,000 new protected apartments were built in the region—twice as many as in Catalonia over the same period. Nevertheless, when adjusted for population and total construction volume, Madrid lags not only behind the Basque Country, but also several other autonomous communities.
Across Spain, most protected apartments are subject to time-limited status. This creates conditions for their gradual decrease in number and for rising prices on the market. As a result, housing originally intended to support low-income families is becoming a target for investment and speculation.
Market impact
When protected apartments enter the open market, their prices rise significantly. For many local residents, this means losing the opportunity to buy or rent affordable housing. The problem is especially acute in the capital, where demand for apartments is consistently high and price-restricted offerings are steadily dwindling.
Critics of the regional authorities’ policy point out that abandoning permanent protection primarily benefits large investors. They can buy such properties at relatively low prices and then sell or rent them at market rates. As a result, affordable housing disappears, and the social purpose of the program is undermined.
Comparison with other regions
In the Basque Country, the housing protection approach has proven more effective. There, price-restricted apartments retain their status over time, helping to maintain a stable stock of affordable housing. In other regions where protection is limited in duration, the situation is similar to Madrid: once the period expires, the apartments enter the free market.
Overall, experts note that the lack of a unified housing protection policy in Spain leads to an uneven distribution of affordable apartments between regions. In Madrid, despite active development, the number of such properties continues to decline and market prices keep rising.
