The municipal group Más Madrid has filed a lawsuit against the recently approved city council plan regulating tourist apartments. The new regulation requires all short-term rentals in the city center to be located exclusively in buildings entirely designated for this purpose. Otherwise, owners will not be able to obtain an operating license.
According to the opposition, these measures will force many tenants to leave their homes, while investors may start buying up entire buildings to turn them into hotels or tourist apartments. Más Madrid representatives believe this will create ideal conditions for further displacement of permanent residents from the city’s central districts.
The party also points out that legal errors were made during the adoption of the new rules. Specifically, there is no analysis of the economic impact on the city, nor was a financial sustainability report prepared. In addition, there are no effective mechanisms in place to control illegal properties, which are estimated to number over 15,000.
In Madrid, there are already cases where entire buildings are acquired by investment funds, after which tenants are notified that their leases will not be renewed. In some instances, remaining renters face pressure to vacate their apartments ahead of time. Once the residents are evicted, such buildings are often converted into luxury apartments or completely dedicated to short-term rentals.
Despite the large number of illegal apartments, fines for unauthorized activity remain rare. Last year, city authorities issued fewer than a hundred sanctions, even though thousands of properties continue to operate without a license. In one instance, when an illegal apartment collapsed into a residential space, there were no consequences for the owner, and the property continued operating.
The opposition insists on stricter controls, limiting rent increases, and expanding the stock of affordable housing. They believe that only such measures will protect residents’ interests and stop the transformation of central Madrid into an area entirely geared toward tourists.
