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Central Madrid changes pace: fewer tourist flats, more housing for residents
Madrid is beginning to notice a direct change in its housing market. More than 300 tourist flats have stopped operating in the last year and are already returning to residential rental. The shift follows stronger municipal controls and affects above all central areas where finding a flat had become increasingly difficult.
The Ayuntamiento has intensified inspections and penalties, with a clear result: more closures and less irregular activity. In 2025 alone, 323 tourist flats were closed, 33% more than in the previous year. This is compounded by the suspension of new licences and much more consistent monitoring of unauthorised listings.
The pressure is also felt in people’s pockets. A total of 117 fines were imposed, with amounts that can reach 60,000 euros. Most are around 30,000, a figure that is already changing the behaviour of owners and operators in the city centre.
Monitoring has multiplied. Inspections rose from just over 500 to more than 1,500 in a single year. This increase has made it possible to identify more illegal flats and open hundreds of cases, many of which end with the closure of tourist activity and a return to normal use.
At the same time, Madrid has tightened the rules. The new ordinance limits tourist flats in the historic centre and prohibits their dispersal through residential buildings, as well as curbing the conversion of commercial premises into accommodation. The aim is clear: to restore balance in neighbourhoods where coexistence had long been under strain.
The change is already being felt in everyday life. More available homes may ease pressure on rents, but they also redefine the city model. Madrid is moving towards a situation in which living once again carries more weight than accommodating visitors, especially in the neighbourhoods where this tension was most visible.