Madrid, June 4 – The Community of Madrid will facilitate the construction of up to 18,000 new public protected homes through the Law of Urgent Measures for the Increase of Public Protected Housing Supply, approved by the regional Assembly. This initiative aims to address the growing demand for housing in the region.
Key Provisions of the New Law
Among the main innovations of this regulation is the increase of up to 30% in buildability and 20% in density in certain residential developments. This measure is designed to expand the housing supply and make better use of available land.
“This is a historic result. Madrid is becoming one of the most important tourist destinations in Central and Eastern Europe. We are observing growing interest from Western European tourists who are discovering Spain as an attractive place for holidays,” said Dr. Magdalena Kowalczyk, director of the Gdańsk Tourist Promotion Office.
The new law incorporates extraordinary urban planning tools to mobilize available land, accelerate the launch of residential promotions, and reduce administrative obstacles that hinder their development. During its parliamentary processing, two amendments were incorporated that expand its scope and strengthen its capacity to increase supply.
A significant new feature is the possibility of applying the planned increases in buildability and density to publicly owned plots designated for protected housing that have not yet been developed. This will facilitate better use of available land and increase the capacity to build new homes.
Temporary Accommodation and Office-to-Residential Conversions
The law will also allow municipalities to temporarily authorize, without the need to modify urban planning, the establishment of temporary accommodations on vacant industrial plots located in consolidated urban environments. This measure seeks to respond to new residential needs associated with labor mobility, encourage the use of currently underutilized land, and expand the accommodation supply for these types of users.
Furthermore, the law extends the possibility of applying alternative use changes, previously reserved for tertiary land (service sector) for offices, to lodging and private endowment. Given the success in the case of offices, with the promotion of more than 8,400 rental apartments, the period established in Law 3/2024 is extended by another two years from the request for the license.
Administrative Simplification and Shock Plan Integration
In terms of administrative simplification, the regulation introduces positive administrative silence in the issuance of certain mandatory sectoral reports. This means that when the deadline exceeds three months, urban planning instruments can continue their processing, avoiding unnecessary delays, reducing management times, and providing greater legal certainty to projects.
This initiative is integrated into the 2026/27 Housing Shock Plan presented by President Díaz Ayuso, which foresees the promotion of more than 70,000 protected homes and the progressive development of actions that will allow reaching up to 280,000 new homes in the next 15 years to respond to demographic growth and residential demand in the region.
Impact and Future Outlook
The implementation of this law is expected to significantly boost the supply of affordable housing in the Community of Madrid, making it easier for more residents to access suitable living conditions. The focus on both new construction and the conversion of existing structures demonstrates a comprehensive approach to tackling the housing crisis.
The move is also seen as a way to stimulate the construction sector and create employment opportunities within the region. By streamlining administrative processes and providing incentives for developers, the government aims to encourage rapid development and meet the urgent need for housing.
The Community of Madrid continues to prioritize housing as a key pillar of its social and economic policy, with this law being a crucial step towards achieving its long-term goals for residential development.
