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The new housing law in Madrid: a radical change in construction and an imminent political clash

The Community of Madrid presents an ambitious law to increase the supply of protected housing while political clashes with the central government intensify.

Sofía HerreraSofía Herrera· · 2 min read

A boost for protected housing in Madrid

The Community of Madrid is preparing to take a significant step in the housing sector with the approval of its new Law on Urgent Measures for Protected Housing. This project, which will be discussed by the Governing Council, aims to create more than 18,000 new homes in the next four years, exceeding initial expectations of 15,000 units.

One of the most notable features of this regulation is the possibility of increasing density by up to 30% more and an additional 20% in buildability. This will allow developers to construct taller buildings with a greater number of homes without the need to modify existing urban planning. In particular, it is planned to increase the height of buildings by up to two additional floors, which promises to accelerate construction timelines.

Furthermore, the law will facilitate changes in land use, allowing for the construction of protected housing even on private designated land. This measure aims to optimise resources and make use of underutilised spaces. The timeframe for converting vacant offices into residences is also extended to four years, which could be key in mitigating the housing crisis.

Aware of the negative impact that bureaucracy can have on real estate projects, this new legislation introduces the concept of positive administrative silence. This means that if sectoral reports are not received within the established timeframe, procedures can continue automatically. This measure is designed to reduce administrative burdens and accelerate urban development.

However, these reforms come in a tense political context. The Community has expressed its opposition to the recent State Housing Plan 2026-2030, presented by the central government. According to Jorge Rodrigo, the Madrid regional councillor for the sector, this plan encroaches on regional competencies and proposes measures already deemed unconstitutional. The battle for housing is shaping up to be one of the central themes of the electoral debate between Isabel Díaz Ayuso and Pedro Sánchez.

As its parliamentary processing progresses, it is clear that this law not only seeks to address an urgent need such as the lack of affordable housing but also to position Madrid as a benchmark compared to other autonomous communities. With a clear strategy focused on reducing timelines and facilitating construction processes, Madrid could be charting a new course towards an effective solution to its housing crisis.

Sofía Herrera

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Sofía Herrera