The Spanish government has granted the Sindicato de Inquilinos de Madrid and allied groups access to two spaces in Madrid’s Tabacalera building, turning down city hall’s proposal to use the site for affordable housing. The spaces will be renovated before the groups move in.
The Ministry of Culture rejected repeated requests from the Ayuntamiento de Madrid to convert Tabacalera into homes. Instead, it signed a deal with Remontada Tabacalera, a coalition that includes the tenants’ union and several neighborhood associations. The two spaces measure 512 m² and 288 m², for a total of 800 m², Vozpópuli reports. Both will be fully renovated to meet modern safety and usability standards. City leaders are frustrated. The ministry’s decision reflects a national push to use state property for culture and community instead of municipal housing projects.
Vozpópuli reported that the contract for the Tabacalera renovation was signed on September 17, 2026, for €682,500, with funding from European sources. Culture Minister Ernest Urtasun called the deal the result of “months of joint work” and credited the Sindicato de Inquilinos for its role. The Tabacalera complex is undergoing a major overhaul, as the government aims to turn it into a hub for art and residencies. The Ministry of Culture confirmed the renovation plans, also reported by several Spanish outlets.
City hall criticized the decision. Municipal spokesperson Inma Sanz said, “The conversations with the Government of Spain in this, as in other matters, not only have not continued, they simply do not exist, and so they have not paid any attention to us.” Mayor José Luis Martínez-Almeida had pushed for the building to be used for “equipamientos or even affordable housing.” He called reclaiming the site “particularly impressive” for the neighborhood. City officials have long sought to use Tabacalera for municipal facilities or accessible housing, while the Ministry of Culture has stuck to its plan for cultural and social use.
The ministry has promised to fully renovate the union’s future spaces, which the government says will meet all safety and usability rules. Tabacalera is to become a “center for artistic production and residencies,” not housing. The agreement covers the wider Remontada Tabacalera coalition as well as the Sindicato de Inquilinos; future management could include CSA La Tabacalera and local groups. Separately, Real Decreto 614/2026 allocated €50,000 to CSA La Tabacalera de Lavapiés for public events commemorating the former factory.
The decision exposes a deep split between national and municipal visions for Madrid’s public spaces. City hall has called it a missed chance to address housing, while the central government has prioritized culture and community. The city’s housing problem remains. The Guardian and EL PAÍS English have also reported on Madrid’s tenants’ movement and its place in Spain’s housing debate as renters organize and the fight over urban policy grows.
