Borja Carabante, Madrid’s urban planning delegate, outlines the city’s strategy to preserve residential neighborhoods while managing tourism. Under Plan Reside, scattered tourist apartments in residential buildings will be prohibited to mitigate conflicts between residents and visitors. Key measures include:
- Incentivizing residential conversions: Offering urban benefits to transform commercial buildings into housing.
- Centralizing tourist accommodations: Restricting short-term rentals to entire buildings, not individual units.
- Supporting small landlords: Encouraging shifts to long-term rentals amid high demand, stabilizing housing supply.
Critics argue the policy favors large investors, but Carabante emphasizes balancing economic activity with community well-being. He highlights Madrid’s thriving rental market as a viable alternative for small owners, ensuring profitability while addressing housing shortages.
Tourism Distribution and Infrastructure
To prevent hotel price surges, Madrid plans to expand tourism beyond the city center. Areas like Villaverde and Valdebebas, well-connected by public transit, are targeted for new hotel developments. This decentralizes tourism while maintaining the central district’s unique mix of local life and cultural appeal.
Despite national laws allowing resident votes on tourist apartments, Madrid’s licensing rules take precedence. The city will deny permits for tourist units in residential zones, ensuring alignment with Plan Reside.
Madrid’s Growth Projects
- Madrid Nuevo Norte: A major northern development set to boost housing and economic hubs, deemed “unstoppable” despite legal challenges. Construction begins Q1 2025.
- Southern Opportunities: Focus on regenerating underdeveloped areas like Abroñigal, emphasizing mixed-use spaces and sustainability.
- Azca Financial District Revival: A public-private partnership to transform the degraded zone into a vibrant area.
Madrid leads in protected housing construction, leveraging public-private partnerships and streamlined regulations. The city’s low vacancy rate (under 3%) is attributed to legal security for landlords, contrasting with regions where overregulation reduces rental availability.
Carabante envisions a Madrid that:
Expands housing access for talent retention and economic growth.
Transforms urban areas sustainably, enhancing green spaces and public infrastructure.
Maintains global appeal by balancing livability, investment, and tourism.
“Madrid’s challenge is to lead without complacency,” says Carabante. By prioritizing resident needs, strategic development, and sustainability, the city aims to solidify its status as Europe’s premier destination for living, working, and visiting.