The new Madrid’s “Reside Plan” from late August 2025 bans tourist apartments in residential buildings within the historic city centre and other designated areas, with the goal of protecting housing for residents and curbing property speculation driven by tourism.
The plan comes in response to an escalating housing crisis in Madrid, which has been worsened by the boom in tourist rental properties and authorities seek to preserve the residential nature of the city centre and slow the conversion of homes into tourist flats, regulations that aim to mitigate the negative effects of unchecked tourism on real estate prices and the cost of living for locals.
This regulation applies to district like Centro, Chamberí, Salamanca, and Retiro, preventing tourist rentals in residential buildings and requiring separate entrances for any new tourist properties according to Spanish News Today.
Tourist apartments are no longer allowed in buildings designed for residents, including those on the ground floor, and according to HostelTur, well known tourism portal, the new Madrid Residential Plan has already been published in the Official Gazette of the Community and is expected to come into force soon, eliminating the possibility of obtaining licenses for tourist apartments in the historic centre of the Spanish capital with the exception of blocks that are already entirely dedicated to this activity.
The Community of Madrid has approved an amendment to the city’s General Urban Development Plan, which provides for the entry into force of the Residential Plan, according to which is now prohibited to operate local accommodations units in residential buildings, as well as to transform commercial shops into tourist apartments.
According to HostelTur, this new plan replaces the previous one, which dated from 2019 and gives prominence to the historic city, where local accommodation has grown the most, reducing the apartments available for housing.
Among the main changes is the fact that, in the Madrid’s city centre, the existence of local accommodation in residential buildings is now prohibited, something that is now only allowed in less congested areas of the Spanish metropolis or in buildings that are entirely dedicated to this purpose, within a maximum period of 15 years.
HostelTur stated that this measure aims to prevent tourist activity from further reducing the number of apartments available for residential purposes, not least because, according to data from the Madrid municipality, of the 17.360 local accommodation units accounted for in the city, 92.7% operate in apartments, although only 7.45% have a municipal license for this purpose.
The measure is, however, limited to the historic centre of Madrid, since the municipality intends to encourage the decentralization of tourist activity to other areas of the city, although, in these cases, tourist apartments located in residential buildings must have an independent entrance, in a change that was accepted after popular consultation.
The new Madrid Residential plan aims to increase the number of dwelling available for housing in the city, and therefore, also includes incentives for the conversion of office buildings into residential ones.
In the city centre, the conversion of commercial spaces into residential spaces is also prevented, in a measure that aims to reverse the trend that has been registered since 2015 and which has already led to the transformation of 3.306 commercial establishments into residential ones.
HostelTur added that the goal is to protect the quality of life of the city’s residents without harming economic development, which is why this plan bets on a model in which tourists apartments coexist with other types of accommodation, while safeguarding residents from the effects of sharing space in the same building.
Finally, the new residential plan aims to strengthen supervision with a view to detect illegal tourist accommodation, whose fines had already been increased in the previous revision of this plan.
Link
https://www.publituris.pt/2025/09/01/madrid-proibe-al-em-edificios-residenciais-no-centro-historico
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