The issue of illegal tourist apartments in Madrid is once again in the spotlight. For city residents, this is more than just a legal debate—it’s about quality of life, housing affordability, and transparent urban policies. Despite loud statements from city hall about cracking down on illegal rentals, the situation on the ground remains tense: fines are issued, but business goes on.
The Valverde 41 Paradox
One building that particularly incites indignation is number 41 on Valverde Street (Valverde), right in the heart of Malasaña (Malasaña). Here, despite two official rejections to change the property’s use, apartments continue to be actively advertised and rented out to tourists. City authorities denied the conversion request twice—in September 2024 and again a month and a half ago—to move these homes into the hotel sector. However, ads for apartment rentals remain on popular platforms, and the flow of guests never dries up.
At the city council, this address has become a symbol of inaction. The opposition openly accuses the administration of failing to take real measures, with sanctions existing only on paper. The Socialists even filed an official complaint, citing illegal activity. Nonetheless, the apartments continue to be rented at prices ranging from 145 to 440 euros per night, depending on the season and website.
Fines and Reality
According to official data, there are more than 15,000 apartments in Madrid being rented out to tourists without proper authorization. Over the past year, authorities have received nearly 1,300 complaints about such properties. Fines have been imposed on 92 owners, with penalties reaching up to 60,000 euros in three cases due to repeated violations. In practice, however, owners merely suspend operations temporarily, soon returning to their previous practices.
In the case of Valverde 41, the city administration refused to consider a special plan to change the building’s status, citing non-compliance with technical requirements. A representative from the urban planning department declined to comment on either the advertising or possible further action. The management company Madrid Rentals Family, responsible for these apartments, has not responded to press inquiries.
The city vs. landlords
Neighbors in the building and residents of nearby properties report a constant flow of tourists and express concern. Their worries are understandable: noise, instability, and a sense that the law does not apply to everyone. The city council, for its part, reports a drop in Airbnb listings, attributing this to the Reside plan, which bans renting apartments in buildings with permanent residents.
However, the opposition claims that the decline is not due to effective measures, but rather to the introduction of a new short-term rental registry. They also criticize the lack of inspectors capable of effectively overseeing the enforcement of urban planning regulations. Representatives of the Más Madrid movement have also accused the city authorities of inaction and mere formalities.
Double standards
City council member Lucía Lois believes that the situation with Valverde 41 is a clear example of double standards. According to her, hotel operations are being conducted without a license, and the Reside plan does not resolve the issue of overtly illegal apartments. As a result, despite strong statements, the illegal rental market continues to exist, and residents are forced to deal with the consequences firsthand.
While the authorities report successes and the opposition demands real action, tourist apartments in central Madrid continue to generate profits for their owners. And the question of who truly benefits from the current situation remains open.
