Madrid City Council has begun initial discussions to convert up to 2,000 office units into residential housing within the city’s central district, as part of the Reside Plan. This initiative directly addresses one of the key structural challenges of the residential market: the lack of housing supply in prime, well-established urban locations.

According to Mayor José Luis Martínez-Almeida, the proposal aims to create new homes by repurposing existing buildings, avoiding large-scale developments from scratch and providing a more efficient and sustainable response to rising housing demand. This approach is particularly relevant in a context marked by demographic pressure, limited land availability and strong demand for central urban living.

Led by the Department of Urban Planning, Environment and Mobility, the initiative places strong emphasis on public-private collaboration as a mechanism to unlock underutilised assets and reactivate central areas through new residential uses. Office-to-residential conversions are increasingly seen as a key tool to revitalise urban environments, modernise obsolete buildings and adapt cities to evolving living and working patterns.

From an urban planning perspective, the Reside Plan supports a more sustainable growth model, prioritising rehabilitation and adaptive reuse over urban sprawl. The resulting residential supply is expected to cater to a wide range of demand profiles, from young professionals to families seeking to remain in central Madrid, contributing to a more balanced and vibrant urban fabric.

This initiative aligns with a broader trend across major European cities, where office-to-residential conversions are emerging as a structural solution to increase housing supply in prime locations, while optimising the existing real estate stock.
At CG Capital Europe, we have extensive experience in identifying and advising on change-of-use and asset repositioning opportunities, particularly in consolidated urban markets. The conversion of office assets into residential use represents a compelling long-term value creation strategy, combining sustainability, urban regeneration and exposure to structurally strong residential demand.

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