Madrid is launching a major overhaul of regulations for hotels and aparthotels, potentially impacting both residents and tourists. City authorities have decided to allow new types of short- and medium-term accommodations to open in industrial zones where such properties were previously banned. This move aims to ease the pressure on the city center, expand options for tourists, and boost the economy in districts that are gradually losing their industrial character.
New opportunities for business
According to El Pais, the initiative will affect 16 industrial zones across eight districts of Madrid: Arganzuela, Chamartín, Fuencarral-El Pardo, Usera, Ciudad Lineal, Hortaleza, San Blas-Canillejas, and Barajas. In total, more than 240 sites will now be available for aparthotels, flexliving, guest houses, and other types of accommodations. Previously, only traditional hotels were allowed here, while other formats were blocked due to concerns over illegal residential complexes and a possible decline in business activity.
City authorities analyzed more than 3,000 sites and found that many have long ceased to be used for manufacturing. These areas are now home to a growing number of offices and service companies, and the industrial function is gradually receding into the background. That is why the mayor’s office decided to revise restrictions to give new impetus to these districts and attract additional investment.
Regulation changes
Special attention is being paid to areas regulated by the third degree of Norma Zonal 9—a zoning standard that has defined land use in Madrid since 1997. Unlike other degrees, the third degree allows for mixed-use development: offices, services, and now various types of hotels can exist side by side. Authorities believe that the emergence of aparthotels will not undermine the economic function of these neighborhoods; on the contrary, it will help them adapt to modern needs.
Previously, the MPG 00/316 amendment, adopted in 2007, was in effect. It banned all accommodation formats except traditional hotels in order to prevent the creation of hidden residential complexes masquerading as hotels. However, experience showed that such restrictions did not always work: some properties were registered as tourist apartments, only to be rented out as regular housing. This resulted in a loss of commercial space and a decline in quality of life in these neighborhoods.
Tourism Decentralization
The city hall’s new strategy aims to distribute tourism flows more evenly throughout Madrid. In recent years, the city center has faced restrictions on new hotel openings, which has caused rising prices and put pressure on the rental market. Now, authorities want to encourage development in peripheral areas, so that tourists more often choose to stay in less crowded parts of the city. This also aligns with the city’s tourism development plan for 2024–2027.
Among the areas that may be reassigned are the industrial zone along Burgos highway in Fuencarral-El Pardo, the Aeropuerto area in Barajas, Josefa Valcárcel street in San Blas-Canillejas, as well as territories near Costa Rica street and the M-30 in Chamartín, and Andalucía Avenue in Usera. In the future, city hall does not rule out similar changes for other industrial zones if they lose their production function.
Context and similar solutions
In recent years, authorities in Spain and other European cities have increasingly reconsidered the use of industrial areas. For instance, in Barcelona and Valencia, projects are already underway to turn former industrial zones into districts with offices, hotels, and residential complexes. Such steps not only stimulate the economy but also ease the pressure on historic city centers. In Madrid, similar initiatives have been discussed before, but the current plan stands out for its scale and emphasis on tourism development. According to El Pais, experts believe such measures can reshape the structure of urban tourism and give new momentum to the development of outlying areas.
