Madrid is opening a decisive new chapter in the management of its vibrant urban heart. The RESIDE Plana long-debated initiative that was finally adopted by the Community of Madrid in Governing Councilhas entered into force with the clear objective of protecting the use of the main residence and rearranging the Flexible Accommodation in the capital.
This plan, which seeks to move tourist housing out of residential buildings, is a direct response to growing concerns about cohabitation and housing shortages. In the historical centreThe City Council will not grant new licences for scattered tourist dwellings in residential buildings, thus guaranteeing an orderly and legal tourist offer that does not compete directly with residential use.
But the measures are not limited to the centre. Outside the historic centreIn the case of tourist accommodation, licences for tourist accommodation shall only be granted to those properties which have independent access on ground or ground floor. This arrangement seeks greater segregation of uses and less friction with neighbouring communities.
The RESIDE Plan also introduces important changes for the future of the Flexible Accommodation and affordable housing. The private facilities which are obsolete and under some form of protection may be transformed into affordable rental housing and/or colivingprovided that the property is rehabilitated. In addition, the following will be offered urban incentives to convert office buildings to residential useThe aim is to increase the available housing stock.
A crucial point is the new regulation for residential buildings not located on commercial streets. Tourist dwellings will be possible, but only if the entire property is used for this activity and the licence shall be granted for a limited term of 15 yearsafter which the building will revert to residential use. This measure seeks models of Flexible Accommodation more controlled and with a defined horizon.
Finally, the plan will shield local commerce by prohibit their conversion into tourist accommodation in the historic centre and on the main shopping streets. This is an attempt to protect the traditional economic fabric of the city and to ensure that citizen services are not diminished.
The entry into force of the RESIDE Plan represents a significant turnaround for Madrid's real estate market. Operators, investors and owners of Flexible Accommodation will have to adapt to this new legal framework, which seeks to rebalance the balance between tourism and residential life, in favour of a more sustainable and orderly growth model for the capital.
In the next edition of Vitur Forum Madrid we will have a policy panel where we will analyse the impact of the RESIDE Plan from an institutional and private sector point of view to understand how this will affect investment and the future of the Flexible accommodation.
Source: Diario de Madrid
