The end of Airbnb as we know it in Madrid?
Updated: Apr 22, 2020
The plan by the Madrid authorities announced last week which would prohibit Airbnb in all flats in central and historic Madrid which do not have direct access from the street (flats are almost always accessed through a common portal or hallway) would mean that 95% of the flats currently on offer would be illegal. The proposed changes in the law are due to be passed in June or July of this year and would come into effect before the end of the year. The new measures would not affect rentals for less than 3 months in rooms in primary residences. The residential property market here in central Madrid has been rising steadily since 2014 and some have voiced concerns about how long it could be sustained. Investors buying properties and finding Airbnb the most lucrative way to rent them out certainly account for some of the buyers and contribute therefore in part to this this price acceleration - but there are and continue to be are several other factors behind our active real estate market, namely overseas (LatAm etc) and national investors, (Barcelona) and golden visa seekers. While the proposed changes in the panorama would have a significant impact on rentals in central and historic Madrid, might it also prevent the market from overheating?