Decrease in short-term rental properties
In the Spanish capital, there has been a significant drop in the number of apartments rented out to tourists in recent months. Following the launch of the municipal Plan Reside program at the end of August, the rental market for visitors has seen noticeable changes. According to official data, the number of such properties fell by 2,662 units over four months. While there were nearly 17,000 in July, by early November just over 14,000 remained. This is a decrease of 15.7 percent — the largest drop in recent years.
Impact of new regulations and joint action
The situation changed not only due to new municipal regulations. Madrid authorities and the professional association of property managers (Colegio de Administradores de Fincas de Madrid) joined forces to inform residents and monitor compliance with the law. As a result of their collaboration, more than 1,400 apartments operating without the necessary permits were shut down. For comparison, a year ago in November, there were almost 17,500 such properties in the city — 19.8 percent more than there are now.
Key provisions of Plan Reside
The Reside Plan, developed by the administration led by José Luis Martínez-Almeida, is designed to preserve the housing stock and bring order to the tourism sector. One of its key measures is a ban on issuing new licenses for apartments located in residential buildings in the historic center unless they have a separate entrance from the street. The only exceptions are for ground-floor units or those with independent access. Additionally, the program encourages the conversion of office buildings into residential properties to increase housing availability for city residents.
Stricter sanctions and enhanced enforcement
Until recently, offenders faced relatively small fines—ranging from one to three thousand euros. Now, under the new regulations, much harsher penalties are imposed for illegal tourist rentals. In cases of repeat violations, fines can reach up to 100,000 euros. The city council is proactively informing property owners of the new requirements by sending notifications warning them to cease such activities and outlining the consequences for non-compliance.
Creation of a unified database and next steps
As part of an agreement between the city and the association of professional property managers, a unified database is being created to include information on apartments listed as tourist rentals but lacking a municipal license. This initiative is aimed at speeding up the detection of violations and improving oversight of the rental market. Authorities stress that these measures are designed to protect the interests of permanent residents and maintain a balance between the city’s appeal to tourists and the comfort of local residents.
