In the building located on Mallorca street in Barcelona's Eixample neighborhood, the situation has become untenable for its residents. Two years ago, ten families lived there; currently, only five remain. The last to leave, on June 4th, was a 70-year-old resident who had lived there since 1989. This situation has worsened since the Barcelona-based investment fund Palau i Manfredi acquired the property in 2024.
According to a resident who has lived in the building for 25 years, the new owner's management immediately communicated their intention not to renew contracts, aiming to sell the apartments. This acquisition has sparked controversy, as, according to residents and property registry records, the building was sold to four different investment funds. This strategy, the resident explains, was allegedly used to circumvent the City Council's pre-emption and redemption rights and avoid the corresponding 30% payment. "These transactions are carried out following all legal strategies, bypassing regulations; made the law, made the trap," she denounces.
Of the tenants still residing there, four have tacitly extended contracts that last for another three years. However, the property has offered them financial compensation to leave their homes earlier. The aforementioned resident received an offer of 15,000 euros to move out, accompanied by an explanation about the need to install an elevator to sell the penthouse, work she ironically describes as "very burdensome." This construction, however, has not been carried out.
The sale of this building is part of a common tactic in the city. After the death of the original owner, who was over 90 years old, the property passed to his wife, also elderly, and subsequently to nephews who sold it to the highest bidder. "These are companies waiting for these situations to arise to make an offer at a lower market price, for buildings with tenants that are in relatively poor condition and therefore can offer a lower price," explains the resident, defining this practice as real estate 'flipping'.
Currently, the building is back on the market for a price significantly higher than its acquisition cost. According to property registry documents accessed by residents, the entire property was purchased for 6 million euros, with individual apartments at 300,000 euros. Current listings place the apartments at 720,000 euros, and the entire building is listed for 9 million euros. The owning companies have not responded to inquiries from this outlet.
Despite the pressure, the residents are not giving up. They have joined the tenants' union and state that, even if their contracts expire, they have no intention of leaving and will continue paying rent.
The Eixample has become a hotspot for real estate speculation in Barcelona, concentrating numerous operations of this type. A report by the FAVB identifies over 200 speculative developments in the district, affecting thousands of homes with prices far above the average. This situation contrasts with the scarcity of affordable housing, with only 228 units in the public housing stock. Neighborhood movements warn that this dynamic is causing the progressive displacement of residents and the transformation of the neighborhood, with buildings being emptied by investors to increase their value. They are calling for control measures and preventive policies to prevent the phenomenon from becoming irreversible.
