A new boost for housing in Madrid
The Community of Madrid has taken a significant step towards solving the housing crisis by approving the Law on Urgent Measures for Increasing the Supply of Protected Housing. This regulation will allow for the construction of up to 18,000 new homes with public protection, a direct response to the growing residential needs in the region.
The regional government has designed this law as part of the 2026/27 Housing Shock Plan, which aims to mobilise available land and facilitate residential development. One of the most notable features is the increase allowed in urban planning parameters, which includes a 30% increase in buildability and a 20% increase in density for projects aimed at protected housing.
The law also includes specific measures for public plots that have not yet been developed, allowing their use for protected housing. This represents a crucial opportunity to improve the utilisation of public land and promote new residential developments in already planned areas.
A relevant innovation is the temporary authorisation by municipalities to implement housing in vacant industrial plots within established urban environments. This measure is designed to address housing needs linked to labour mobility, using underutilised land within the urban fabric.
Furthermore, the possibilities for changing the use of tertiary buildings are expanded, allowing offices to be transformed into accommodations or community spaces without the need to modify existing urban planning.
The law also extends by an additional two years the deadline for requesting the conversion of offices into homes, a mechanism that has already generated more than 8,400 rental homes. This approach aims to keep the transformative process active and thus increase the residential supply where it is most needed.
In order to expedite the necessary procedures, positive administrative silence is introduced in certain mandatory sectoral reports. If the deadlines exceed three months, procedures may continue without waiting for these reports, which promises to reduce times and avoid administrative blockages.
In the long term, this legislative effort is part of a broader vision that anticipates developing up to 280,000 new homes in 15 years, adapting to demographic projections and emerging residential demands. The Community thus hopes not only to respond to the current crisis but also to anticipate future housing needs.
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