The issue of housing affordability in Madrid has once again come to the forefront following a sharp decline in the number of officially registered tourist apartments. For city residents, this is more than just statistics—it’s a real impact on rental prices and the ability to find housing. Although authorities reported deregistering over 3,000 properties, thousands of apartments continue to be rented out to tourists without any permits, sparking a wave of outrage among locals and real estate experts.
According to the latest data, by 2025 fewer than 10,000 tourist apartments remain officially registered in Madrid—a figure comparable to 2018 levels. At first glance, this may seem like a victory in the fight against overtourism, but the reality is far more complex. Industry associations estimate that there are more than 16,000 illegal rentals in the capital alone, which not only bypass the law but also have a significant impact on the long-term rental market.
Shadow rentals
The problem of illegal tourist apartments in Madrid has reached alarming proportions. Official estimates suggest that only about 10% of such properties are listed in the mandatory register. The rest continue to operate outside the legal framework, often without even attempting to obtain a license. At the start of 2025, experts noted that the vast majority of listings on popular platforms were published without proper documentation.
City and regional authorities are facing criticism for insufficient measures against illegal rentals. Opposition representatives point out that during years of the housing crisis, the government essentially turned a blind eye to the activities of thousands of illegal apartments, which led to price hikes and decreased housing availability for local residents. Meanwhile, new government initiatives to create a unified registry and tighten controls have already resulted in mass denials of registration for tens of thousands of properties across the country.
Weak oversight
Despite stricter legislation, actual inspections and sanctions remain rare. In 2025, fewer than one thousand inspections were carried out in Madrid, which is clearly insufficient to monitor tens of thousands of properties. Most owners prefer to delist their apartments as soon as an inspection begins, thereby avoiding real fines. Over the past year and a half, not a single repeat offense has been recorded, and the total sum of all fines over the previous ten years barely exceeded 690,000 euros.
In 2024, the Madrid City Council tightened fines for illegal rentals, increasing the minimum penalty from 1,000 to 30,000 euros, and up to 100,000 euros for repeat offenses. However, even these measures failed to stem the flow of illegal listings. In 2024, only 92 fines were issued, with total penalties amounting to less than 3 million euros. This trend continued in 2025 despite high-profile statements about cracking down on violators.
A market under pressure
The reduction in the number of officially registered tourist apartments has not brought the expected relief for renters. According to estimates from the National Statistics Institute, more than 18,000 short-term rental properties continue to operate in the Madrid region, with total accommodation capacity exceeding 70,000. Over the past six months, their number has dropped by 10%, yet the capital still leads in the rate of decline among the country’s tourist regions.
Experts point out that the mass withdrawal of apartments from the official registry does not always mean they have ceased operations. Many owners simply go underground, continuing to rent out their properties through online platforms. As a result, the long-term rental market remains under pressure, and housing prices keep rising. In the coming months, new data is expected to reveal how effective recent measures to combat illegal rentals have been.
Expectations versus reality
Madrid authorities link the decrease in registered tourist apartments to the implementation of a special control plan launched in summer 2024. However, a record number of properties was registered just a few months earlier—in August 2024, there were over 22,000. Today, fewer than 10,000 apartments remain officially registered, which is 58% less than the peak in 2022.
A second wave of inspections and the release of new data are expected soon, which will make it possible to assess the real impact of removing more than 3,000 apartments from the registry in 2025 alone and over 4,000 in 2024. Meanwhile, residents of Madrid continue to face a shortage of affordable housing and rising prices, with the illegal rental market remaining one of the capital’s major unresolved issues.
