New real estate project of the Casa de Alba in Madrid: the contract of 75 families, who believe they will build tourist apartments, is not renewed

On Manuel Street and Duque de Liria Street, just 100 meters from the Liria Palace – property of the Casa de Alba – there are no neighbors of Belgian or Dutch origin. However, an old warning from the 16th century, coined in the Netherlands to distress children who misbehaved, has been flying over the heads of the nearly 75 families that populate the block, made up of five portals, for a few weeks. “The duke is coming, the duke is coming,” the youngest children were told, threatening them with the severity of Fernando Álvarez de Toledo, the III Duke of Alba, during the War of Flanders. Five centuries later, it is no longer the heavy hand of Fernando Álvarez de Toledo that is frightening, but the real estate plans of his successors, the current Duke of Alba, Carlos Fitz-James Stuart Martínez de Irujo and, above all, his son Fernando Fitz-James Stuart, the Duke of Huéscar, last heir of the ducal house: «Has the letter already arrived to you too?» the neighbors ask each other. The letter they refer to is a notification in the form of ordinary mail that began to appear less than a month ago in the mailboxes of the portals, sent by the new manager, a company called Bala Investment that was created in May 2025 and is chaired by Enrique Dancausa Treviño, brother of Concepción Dancausa Treviño, who was Minister of Family, Youth and Social Policy of the Community of Madrid with Isabel Díaz Ayuso. The letter, signed by the CEO, Javier Zarrabeitia, announces that, “for technical reasons and the rehabilitation of the building”, the rental contracts will not be renewed when they expire and the tenants are invited to leave in an “orderly” manner in the coming months. According to residents’ estimates, between 40 and 50 have already been delivered. After it became known in 2024 that the Casa de Alba was beginning a process of reforming another historic building, also its property, next to the Liria Palace, to reconvert its use – until then dedicated to offices – into tourist apartments that will be managed by José María Aznar Botella – son of José María Aznar -, the neighbors began to fear that they «would be the next to be evicted.» For this operation, it was necessary to approve a special and specific urban planning for said building by the Madrid City Council, which passed through the Cibeles plenary session, and thanks to which the Casa de Alba ended up being granted the tourist use license for the future properties. In this report, none of the neighbors wanted to appear under their own name or have personal details published «for fear of reprisals» from the ducal house. They will be called by fictitious names: David, Gonzalo, Mateo and Esther. Numbers 3, 5 and 7 on Manuel Street, as well as 4 and 6 on Duque de Liria Street, historic buildings from 1929, have always been property of the Casa de Alba. For decades, the homes were intended for “trusted” families, as explained by a former manager who worked hand in hand with Cayetana Fitz-James Stuart, the late Duchess of Alba. The tenants were often their own butlers, cooks and other staff of the Liria Palace. Their relatives, acquaintances or employees of the companies that operated in the old office building also joined. «A very closed circle. The houses were not advertised. The duchess wanted them to be trustworthy people. A personal interview had to be done because above all they were looking for families for long-term rentals. The [relación] price-quality was very good. They were not looking to speculate,» says David, a tenant who arrived after working in one of those offices and establishing trust with one of the building’s managers. «There was a waiting list,» he continues. The death of the Duchess of Alba in 2014 marked a before and after. Carlos Juan Fitz-James Stuart Martínez de Irujo became the new big boss of the Albas and a change began in the management policy of the buildings. According to the documents provided by the Property Registry, Carlos already had acquired these buildings by “donation under public deed” on July 4, 2011. “The relationship began to change. The free apartments were replaced by foreign students who occupied them during the school year,» says David. The definitive turning point was the moment when Charles delegated the administration of the properties to his children, especially Fernando Fitz-James Stuart. Among other things, the former trusted managers of the Duchess of Alba were fired. «Since then they have ignored us, there have been problems in the building and they have delayed the arrangements as long as possible. The motto is not to spend more money,» adds David. The properties on Calle de Manuel and Calle de Duque de Liria range from 45 to 90 square meters, with one, two and three bedrooms. The current rent is, depending on the property, between 1,000 and 1,500 euros, well below the market price in the area. For example, in a student residence in the adjacent Plaza de Cristino Martos, the most cheap costs 1,200 euros per month. The most common profile is families with children and older people with old income. Transforming these properties into tourist rentals could “triple or quadruple the benefits,” according to a real estate expert in the area who also does not want to offer his name. One of the buildings of the Alba house, with one of the oldest corralas in Madrid. David ExpósitoThe first clue that something was brewing in the bowels of the Albas were the visits three years ago from two architectural firms. The last one, Morph Arquitectos, will be in charge of undertaking the project of rehabilitating some buildings that, “yes, it is true, they need a profound update,” says the same expert. Morph Arquitectos did not want to answer questions about the plans for the Casa de Alba. The neighbors, however, have obtained information about the project through the different architectural firms that have visited them to measure their houses. «What we have received is that they are looking to convert it into student residences or tourist apartments, the proposal to rehabilitate the building goes in that direction. Anything else makes no sense,» says Gonzalo. In addition to the letters to the families, the ducal house has also contacted the businesses rented on the ground floor, such as an Arabic restaurant called Aladino and a CrossFit gym. «They have told us that they have to talk to us. We already know where the shots are going,» they say. «It’s a shame. The big owners are changing the typology of the city at will, with laws tailored to their speculative business and without anyone doing anything. You destroy families, entire lives, to continue increasing your empire. It’s a social issue. They don’t care. They don’t even consider raising our rent. We no longer serve them,» complains Mateo, another neighbor. The dukes, through their communication agency, confirm «the beginning of a process of non-renewal of rental contracts in a group of properties belonging to Mr. Carlos Fitz James near the Liria Palace» under the «commitment to the updating and preservation of these historic buildings.» “The dialogue with our tenants is being managed individually, transparently and with full willingness to help,” they add. However, they do not specify anything about the next business plan either. “No decision has been made about the future use or final destination of the properties,” they say. The relationship between the mayor of Madrid, José Luis Martínez-Almeida, and the Casa de Alba is close, even family. Fernando Fitz James went to the councilor’s wedding, because, among other things, his wife, Sofía Palazuelo, is the cousin of Teresa Urquijo, Almeida’s wife. Fernando’s businesses depend largely on the licenses granted by the mayor. Fernando Fitz-James Stuart, portrayed inside the Liria Palace, in October 2025. Europa Press Entertainment (Europa Press via Getty Images) In accordance with the Reside Plan, the City Council’s star measure to regulate tourist apartments, licenses will only be delivered to the owners of complete buildings or to a group of owners who agree to exploit the same block with this formula. “The Reside Plan has opened the possibility to thousands of buildings in Madrid that until now could not be transformed into hotels or tourist flats,” denounces Antonio Giraldo, PSOE urban planning spokesperson at the Madrid City Council. «The Duque de Liria buildings 2 and 4, as well as Calle de Manuel 3, before the Reside Plan would not have been able to be transformed into tourist apartments. Now it can be done, for 15 years, via license and on condition that the building is rehabilitated, something that agrees with the letter that seems to have been sent to the neighbors,» he adds. However, number 5 and number 7 on Calle de Manuel, corresponding to one of the oldest corralas in Madrid, «have a higher classification» and would need a «special plan prior to passing through the plenary session of the city council» and could be transformed into housing for tourist use or a hotel «forever.» «It is an uncontrolled reclassification of the city. What we already warned about when the Reside Plan was approved is happening. With this plan, 78% of the buildings in the historic center of Madrid have the possibility of being transformed into tourist use. This favors the massive expulsion of neighbors, especially those who are rented,» adds Giraldo. The Madrid City Council, for its part, has not wanted to comment on this matter. Do you have something to tell? Write to the author at dexposito@BitcoinDynamic.es