Madrid Cracks Down On Tourist Rentals: Over 2,600 Flats Disappear After New Housing Plan

Madrid’s booming short-term rental marketplace is shrinking fast. Since nan metropolis assembly approved its “Plan Reside” to modulate tourer accommodation and protect residential housing, much than 2,600 tourer flats person vanished from nan capital’s listings – a driblet of 15.7 per cent successful conscionable a fewer months.

According to Madrid City Council, nan number of holiday rentals has fallen from 16,959 successful July to 14,297 successful November, pinch information compiled by nan independent level Inside Airbnb, which tracks listings connected nan celebrated rental site. The inclination accelerated aft nan scheme was formally ratified connected August 27, showing that nan city’s tougher stance is already having a visible impact.

What is nan scheme Reside – and why it’s changing Madrid’s rental market

The Plan Reside, backed by Mayor José Luis Martínez-Almeida’s administration, is portion of a wider effort to sphere residential lodging and power nan accelerated dispersed of tourer rentals, galore of which run illegally. The measurement received last support from nan Community of Madrid successful August 2025, and it’s already reshaping nan city’s rental landscape.

The scheme divides Madrid into 2 main zones:

• The historical centre (APE 00.01) – which includes districts for illustration Centro, Chamberí, Salamanca, Retiro, and parts of Arganzuela, Moncloa and Chamartín – wherever caller tourer flats wrong residential buildings are strictly banned, moreover connected nan crushed floor. The conversion of commercialized premises into tourer apartments is besides prohibited.
• Areas beyond nan M-30 ringing road, wherever tourer accommodation tin still beryllium authorised, but only if nan spot has a separate, independent entranceway astatine thoroughfare level.

The aim, according to nan city, is to onslaught a equilibrium betwixt welcoming visitors and ensuring that section residents tin still spend to unrecorded successful nan metropolis centre.

Hefty fines for forbidden tourer flats

The autumn successful numbers isn’t conscionable owed to tighter zoning laws – it’s besides acknowledgment to nan tougher sanctions that now use to forbidden vacation rentals.

Since precocious June, nan metropolis assembly and nan College of Property Administrators of Madrid (CAFMadrid) person been moving together to place and pass owners of unlicensed tourer flats. The collaboration includes 2 main actions:

• Educating residents’ associations connected really to study forbidden tourer rentals successful their buildings.
• Informing landlords astir nan steep fines they look if they proceed operating without a licence.

And those fines are nary mini matter. The first confirmed punishment is €30,000, nan 2nd €60,000, and nan 3rd €100,000 – pinch fines perchance reaching €190,000 if nan rules are many times ignored. Previously, penalties ranged from conscionable €1,000 to €3,000, making forbidden renting a low-risk business for many.

This crackdown has already produced results. Since nan collaboration began, 1,423 unlicensed tourer rentals person been taken disconnected nan market. CAFMadrid is now straight contacting owners of suspected forbidden properties, explaining some nan fines they look and nan steps they tin return to legalise their activity – if possible.

A City divided complete tourism – but seeing results

Madrid’s activity insists nan scheme isn’t astir pushing visitors away, but astir restoring bid to neighbourhoods wherever short-term rentals had exploded successful caller years. In immoderate cardinal districts, locals had complained astir changeless noise, overcrowding, and rising rents driven by platforms for illustration Airbnb.

The latest charismatic study from October 2024 showed that Madrid had 17,360 tourer establishments, of which 16,100 were tourer flats. Shockingly, only 7.45 per cent – astir 1,200 units – had a valid licence.

With nan caller rules now successful force, nan metropolis hopes to curb forbidden rentals, protect semipermanent lodging supply, and make tourer accommodation much master and accountable.

Inside Airbnb’s latest figures show that betwixt July and November 2025 alone, 2,662 listings disappeared, suggesting that galore hosts are choosing to retreat their properties alternatively than look penalties aliases effort to comply pinch caller regulations.

Balancing Tourism and Housing – Madrid’s Tightrope Walk

The Plan Reside marks a awesome displacement successful really Spain’s superior views tourism’s spot wrong its lodging system. It’s an effort to reclaim residential spaces while still keeping Madrid unfastened to visitors.

Critics pass that tighter rules could trim accommodation options for visitors and wounded section businesses, but supporters reason that unchecked vacation rentals were driving residents retired of nan metropolis centre.

What’s clear is that nan city’s connection is firm: tourist rentals will nary longer beryllium a free-for-all.

As Madrid prepares for 2026, nan effects of nan scheme are already visible – less tourer flats, quieter neighbourhoods, and a renewed effort to protect lodging for those who really unrecorded successful nan city.

Stay tuned pinch Euro Weekly News for much news from Madrid