Madrid's first skyscraper on Gran Vía is up for sale and could become a luxury hotel

The legendary Telefónica building on Gran Vía is up for sale and could be repurposed in the future. Madrid’s first skyscraper, which became a symbol of the city’s modernity as early as 1930, is at the centre of a major real estate operation.

Telefónica has commissioned Rothschild bank to manage the sale of its historic headquarters at Gran Vía, 28, as part of its asset review strategy. The property covers more than 30,000 square metres and is located in one of the liveliest and most touristy areas of the capital.

According to industry sources, potential investors are considering turning the building into a complex with a luxury hotel, apartments, and retail spaces. This would continue the transformation of Gran Vía, where former offices are increasingly being replaced by high-end hotels and residences.

However, the future owner will need to take into account the building’s protected status and urban planning restrictions. The future of the Fundación Telefónica cultural space also remains open, as it could stay in the building as a tenant.