Yzabelle Bostyn
THESE are the new rules to be put in place in Madrid after the city bans Airbnb-style flats.
Madrid city council has introduced new regulations to restrict the spread of tourist flats in the historic centre.
The ‘Plan Reside’ aims to manage tourist rentals in central Madrid, prioritising the preservation of residential spaces.
Under this plan, short-term tourist apartments (VUTs) will no longer be permitted within residential buildings.
This restriction extends to any ground-floor units and bans the conversion of commercial properties into tourist rentals.
Mayor Jose Luis Martinez-Almeida outlined the plan’s threefold goal: “To address the depopulation of the city centre, expand residential availability, regulate tourist accommodations, and enhance harmony between residents and visitors.”
According to the new guidelines, VUTs will only be allowed within entire buildings dedicated solely to tourist accommodation in the historic centre.
Existing licensed rentals can continue to operate, but residents can look forward to fewer disruptions from short-term visitors.
However, buildings not designated as residential can still be converted for tourism purposes without restriction, such as commercial buildings or hotels, as these do not impact housing supply, according to the council.
Outside the historic centre, VUTs may operate as normal, provided they have a separate entrance.
The conversion of commercial properties into VUTs will not be allowed in areas classified by the General Urban Development Plan as primarily commercial.
It follows a significant rise in tourist rentals in the capital, with numbers doubling since 2017 to around 16,100 units offering 55,155 tourist spaces. Of these, only 1,131 units are legally licensed.
Madrid’s historic centre has experienced notable impacts from the tourist rental boom, with the city council estimating that over 3,300 commercial properties were converted to tourist or residential use between 2015 and 2024.
This has been particularly prevalent in the centre, where tourist rentals represent 42% of all short-term accommodations in the city, with 6,755 units offering over 25,000 beds.
The Plan Reside, introduced by Mayor Martínez-Almeida and Urban Planning Delegate Borja Carabante, replaces a previous plan from 2019.
The council claims that the older regulations, including allowing VUTs on ground floors, proved ineffective at curbing illegal tourist rentals and safeguarding the central district’s residential function and local commerce.
The new plan eliminates the ‘ring’ zoning criteria of the previous plan, instead establishing two distinct areas: the Specific Planning Area of the Historic Centre (APE 00.01) and regions outside the centre, covering parts of the M-30 ring road and all areas beyond it.
However, opposition parties argue the new plan may worsen housing affordability and favour speculative investors.
Mas Madrid spokesperson Rita Maestre criticised it, stating, “This so-called Plan Reside is a carte blanche for speculation, allowing property prices to soar and pushing out residents.” She expressed concerns about a lack of enforcement measures, noting that illegal tourist rentals ‘continue to grow.’ The PSOE’s urban planning lead, Antonio Giraldo, also questioned the plan’s ability to protect residential areas, calling it ‘a mockery’ and claiming it primarily serves property speculators.
In April, Mayor Almeida enacted temporary measures to suspend new VUT licences, increase fines, and release an official list of licensed tourist properties.
This action led to 2,000 inspections, uncovering 448 properties used for tourism, 356 of which were suspended and 221 converted back to residential use.
The new regulations are set to take effect by August 2025 following a public consultation period and approval from the Madrid Community.
