In the very heart of the Madrid mountains, a conflict is unfolding that could change the fate of hundreds of families and an entire district. The Bank of Spain has announced its intention to relinquish its right to use a plot of land that was allocated to it at the beginning of the last century. Since 1945, a massive building that once served as a departmental shelter has stood here, and over the decades, a whole community has grown up around it with chalets, apartments, and restaurants.
The story dates back to 1920, when the state allocated the land for the construction of railway infrastructure. Later, during the Franco era, a shelter was built here for employees of the Bank of Spain. In the 1950s, hundreds of workers came here to relax or spend weekends in the fresh air. Over time, the area filled with residential and commercial properties, which have now become the center of a legal dispute.
Since 2010, the former shelter has been closed, and the building itself is slowly deteriorating. Nevertheless, the Bank of Spain is forced to spend tens of thousands of euros each year on security and minimal maintenance. As early as 2019, there was talk of demolishing the structure should the land need to be returned to its original state. For now, however, only the return of the land is under discussion, not the demolition of the buildings.
The Madrid authorities and the municipality of Cercedilla are preparing for a lengthy battle over control of this valuable land. Around 900 property owners have received notices requiring them to vacate their homes and commercial premises. For many, this came as a complete surprise, as it concerns dozens of chalets and hundreds of apartments that were built with old permits. Hundreds of appeals and dozens of lawsuits have already been filed, and local administrations are allocating millions of euros for legal support. It is possible that the dispute could reach the country’s highest courts.
The process accelerated after a decision by regional authorities in autumn 2024 to declare the long-standing concession—originally granted to a railway company—expired. Since then, tensions have only risen: residents fear losing their homes, while officials insist the land must be returned to state ownership. How this story will unfold remains unclear, but one thing is certain: months of legal proceedings and heated debates lie ahead.
