Thousands of protesters took to the streets in cities across Spain on Saturday, October 3, 2026, to demand government action on rising housing costs. The demonstrations followed a Friday vote in which the Spanish parliament rejected two emergency decrees proposed by Prime Minister Pedro Sánchez's minority government. Protesters gathered in approximately 50 cities, including Madrid, Valencia, and Barcelona, to call for rent regulations, an end to evictions, and restrictions on property purchases by investment funds.
The political effort to address housing followed the September eviction of 87-year-old Maricarmen Abascal from her Madrid home of seven decades. Although a public backlash eventually led the property firm Urbagestión to negotiate her return to the flat at a low rent, the event triggered sustained protests and encampments in public squares like Madrid’s Puerta del Sol. The Bank of Spain reports a shortage of 700,000 homes, while the national statistics institute INE recorded a 12.2% increase in house prices for the second quarter of 2026.
On Friday, October 2, Spain’s Congress of Deputies voted down two separate legislative decrees. The first, which included a ban on evictions for vulnerable tenants until 2030 and tax increases on tourist apartments, failed 178 to 172. The second, which proposed the automatic renewal of rental contracts, was rejected 184 to 166. The conservative People's Party, Vox, and Together for Catalonia (JxCat) opposed the measures, leaving the Socialist-led coalition without the votes necessary to pass the legislation.
The failure of this legislation affects residents across Spain, particularly renters in urban centers like Madrid and Barcelona. According to real estate firm Idealista, rental prices in Madrid rose 9.7% in 2025, reaching an average of €22.70 per square metre. In Valencia, where nine police officers were injured and five people arrested during Saturday's clashes, the tension between tenant groups and real estate interests has led to a call for a general strike.
The scale of the housing shortage involves a deficit of 700,000 units across the country. One resident in Madrid reported that a one-bedroom apartment now frequently costs €1,000 per month, an increase from 900 euros for a shared two-bedroom flat he previously had. Without the protections proposed in the rejected decrees—such as the two-year extension to leases and the ban on evictions—vulnerable tenants remain subject to current market forces. The rejection of these measures by the parliament also impacts the stability of the national government, as the loss of a key policy vote raises the possibility of an early general election before the scheduled summer 2027 date.
What happens next depends on whether the minority government can negotiate with other parties or if the ongoing protests lead to a general strike. While some temporary relief was seen in individual cases, such as a 10-day postponement for an eviction in Burjassot, no new national vote has been scheduled. Real estate data indicate that prices continue to trend upward, with Barcelona currently the most expensive market at €23.80 per square metre. The government has not yet announced a new legislative strategy following the defeat of its decrees.