Spain Unveils Sweeping Housing Reforms After Eviction of 87-Year-Old Ignites Nationwide Protests

Spain's coalition government on Tuesday approved a package of far-reaching housing measures aimed at cooling the country's escalating property crisis, just days after the forced removal of an 87-year-old woman from her Madrid apartment triggered protests in cities across the nation.

The proposals, announced following a cabinet meeting, include a possible moratorium on evictions that would run until 2030, according to Health Minister Mónica García, who briefed reporters on the agreement. The government estimated the measures could bring relief to more than five million residents struggling with rising rents and precarious housing conditions.

García framed the initiative as a direct response to public pressure, acknowledging the wave of demonstrations and encampments that have spread in recent days. She said the mobilizations were instrumental in pushing the government to act, telling reporters that without those efforts the package would not have materialized. The minister also warned that the state must now intervene in what she described as a speculative housing market, arguing that the balance of power between ordinary citizens and large investment funds needs to be redrawn.

Alongside the proposed eviction ban, the agreement includes provisions to extend existing rental contracts through 2028, tighten oversight of short-term holiday lets and individual room rentals, and prohibit investment firms from purchasing residential properties. García said these steps collectively target the financialization of housing that has driven prices beyond the reach of many Spanish households.

The announcement came as Maricarmen Abascal, the 87-year-old whose case has become a lightning rod for anger over evictions, was reportedly set to return to her home. Her lawyer said Monday that a deal had been reached with the company that owns the property, though Abascal — who was hospitalized after being carried out on a stretcher — was unable to attend the meeting and had not yet signed the agreement. The image of the frail pensioner being removed from her flat has circulated widely, galvanizing public outrage.

Following the eviction, demonstrators established an encampment in Madrid's Puerta del Sol, the central square that has historically served as a gathering point for social movements in Spain. The encampment has since expanded to include hundreds of participants, and similar protests have been reported in Barcelona, Seville, Malaga and Cadiz, reflecting the breadth of concern over housing affordability across the country.

The political path forward, however, remains uncertain. The minority coalition, composed of the ruling Socialists and their junior partner Sumar, does not command a majority in parliament and will have 30 days from the publication of the decree to negotiate an agreement with other parties. That timeline sets up a potentially fraught period of bargaining, with the fate of the measures hinging on support from smaller regional and nationalist parties.

Already, the package has drawn criticism from Míriam Nogueras, spokeswoman for Junts, the pro-Catalan independence party whose votes could prove decisive. Nogueras said the agreement fails to address the concerns of small landlords, arguing that lumping together large investment funds with individuals who have invested their savings in a single property is a mistake. She acknowledged that evictions carried out by vulture funds managing millions of euros must be halted, but insisted that ordinary property owners should not be treated in the same category. She made the remarks during an interview with Spanish public broadcaster RTVE.

The disagreement highlights a central tension in Spain's housing debate: how to protect tenants from predatory practices without penalizing smaller property owners who may rely on rental income. Junts' stance could complicate the government's effort to secure the parliamentary backing needed to convert the decree into durable law. The 30-day window means the government must move quickly to build a coalition around the proposals.

Socialist Housing Minister Isabel Rodríguez was scheduled to provide additional details about the measures at a news conference later Tuesday, offering the government another opportunity to make its case to both the public and potential legislative allies.

The housing crisis has been building for years in Spain, fueled by a combination of stagnant wages, rising rents and the growth of short-term tourist rentals that have reduced the supply of long-term housing in major cities. The pandemic-era eviction of tenants and the broader economic pressures on low-income households have compounded the problem, making housing one of the most pressing political issues in the country.

The eviction of Abascal, who had lived in her Madrid apartment for decades, crystallized those anxieties. Her case drew attention not only to the financial mechanisms behind evictions but also to the human cost, particularly for elderly tenants with limited alternatives. The hospital admission that followed her removal added a stark medical dimension to the controversy, underscoring the physical toll of displacement on vulnerable individuals.

The proposed ban on purchases by investment firms represents one of the most aggressive interventions in the Spanish housing market in recent memory. If enacted, it could reshape the landscape for institutional investors who have acquired large portfolios of residential properties in recent years. The measure targeting short-term and room rentals similarly aims to curb practices that critics say have turned residential neighborhoods into de facto hotels.

The government's decision to extend rental contracts until 2028 would provide tenants with greater security, shielding them from sudden rent increases or non-renewal during a period of economic uncertainty. Combined with the potential eviction moratorium, the provisions amount to a significant expansion of tenant protections, though their ultimate impact will depend on parliamentary approval and enforcement.

The protests that followed Abascal's eviction have drawn comparisons to earlier housing rights movements in Spain, including the anti-eviction activism that gained prominence after the 2008 financial crisis. The encampment at Puerta del Sol evokes the legacy of the indignados movement, which occupied squares across Spain in 2011 to protest economic inequality and political corruption.

For the government, the challenge now is to translate public anger into legislative action. The coalition has signaled it is willing to confront powerful interests in the housing market, but it must navigate a fragmented parliament in which every vote counts. The coming weeks will determine whether the measures remain a decree or become lasting policy.

The stakes extend beyond Spain's borders, as other European countries grapple with similar housing affordability crises and debate how to balance property rights with social protection. Spain's experiment, if successful, could offer a template for governments seeking to rein in speculative real estate practices while shielding vulnerable tenants from displacement.