Residents of Madrid’s Tribulete Street No.7 are grappling with an increasingly common dilemma in Spain: staying in their homes as investment funds reshape neighborhoods for profit-driven tourism. Jaime Oteyza, an architect and father of two, shared his family’s struggle with KhabarAsia:
"If we lose our home, finding another one where our kids go to school will cost double. Buying? Impossible at these prices."
Oteyza’s building, home to 52 families, was purchased by Elix Rental Homes, a fund locals describe as a "vulture fund" aiming to convert units into luxury apartments or short-term tourist rentals. Despite stable careers, Oteyza and his partner, a psychologist, find Spanish wages insufficient against soaring housing costs.
The trend reflects Spain’s deepening housing crisis, where average rents rose 12% year-over-year in 2023. As tourism rebounds post-pandemic, critics argue profit-focused ventures threaten community stability. "Our neighborhood is becoming a hotel," Oteyza lamented, echoing concerns about eroding social fabric.
Economists note foreign investment in Spanish real estate surged 38% last year, driven by tourism’s lucrative returns. This shift raises questions about balancing economic growth with residents’ rights—a tension resonating globally as cities navigate urbanization pressures.
