Real estate funds increase their control of blocks on the left of Eixample by 70%

A study of the Neighborhood Association of l’Esquerra de l’Eixample -neighborhood delimited between Plaza de España and Francesc Macià and between Gran Vía and Avenida Diagonal- has detected a 70% increase in the number of housing blocks controlled by real estate funds in the region. According to the report, presented this Monday in the La Papallona building, currently at least 68 entire buildings in the hands of these companies, 28 more than a year agoan evolution that, according to the entity, increases the risk of becoming cohabiting and seasonal rental. “It should be noted that important progress has been made in the law, but it must be accompanied by oversight to stop any type of maneuver,” said Xavi Riu, a member of the neighborhood organization.

The study has been prepared from cross-referencing data from the cadastre, building permits and advertisements on real estate portals. Additionally, the neighborhood was divided into four subzones that the authors visited to verify changes in the neighborhood on the ground. The result, he noted, is a progressive expansion of speculative dynamics. “In a short time it will be little fun to live in an empty neighborhood. It will be like Venice, in the morning people with their suitcases everywhere, at night no one,” lamented Riu. As they have warned, it does not only affect the tenants, but also owners who live in the neighborhood and its surroundings due to the constant rotation of temporary neighbors, the closure of local businesses and their replacement by businesses aimed at visitors.The investigation has also identified 867 vertically owned buildings (that is, belonging to a single owner) that, according to the neighborhood entity, are at risk of being transformed into cohabiting or intended for seasonal rental, two formulas that have multiplied in recent years in the neighborhood. The association warns that these properties are especially attractive for funds because they allow rapid conversion to residential use and make it easier to avoid rental price limitations, which they have considered a “real estate scam.”

The presentation of the report took place in front of the La Papallona building, which has become a symbol of neighborhood resistance. Marga Aguilar, a tenant of the block, intervened there, explaining the long negotiation process with the fund. New Amsterdam Developerswho will take her to trial this week. The association links its case to a broader trend of purchasing buildings with tenants, comprehensive rehabilitation and non-renewal of contracts to allocate the homes to more profitable uses.

The neighborhood entities and housing unions present at the event have demanded a greater control by public administrations and a reinforcement of inspection to guarantee compliance with current regulations. “The regulatory change is important, but it is not monitored, fines are not imposed,” Riu has warned. In his opinion, without sustained action, the neighborhood’s transformation process can become irreversible.