In the heart of Madrid, the neighbourhood of Carabanchel finds itself at the centre of a shocking case of organised fraud and illegal occupation. Over 28 luxury homes in the recently developed PAU de Carabanchel have been illegally occupied since December 2024.
The Spanish National Police are currently investigating the situation, which has exposed a deeply troubling mafia operation that preyed on vulnerable families.
How the scam unfolded
What initially appeared as an innocent relocation quickly unravelled into one of the most audacious cases of “okupación” in recent years. Families, many of whom were recruited while waiting in line at a local church’s soup kitchen, were lured into paying between €2,000 and €3,000 for access to the luxury homes. The mafia behind the scheme reportedly changed the locks on unoccupied properties. They even employed a concierge to facilitate access for the unsuspecting victims.
In stark contrast, legal tenants in the same building pay rents ranging from €800 to €1,500 monthly. These residents have raised concerns over noise disturbances, late-night fights, and a general disregard for community rules by the new, unauthorised occupants.
A broader social issue
The illegal occupation has ignited a debate over Spain’s ongoing “okupación” crisis. Madrid’s mayor, José Luis Martínez-Almeida, has called for urgent reforms to eviction protocols. He suggested that authorities should remove illegal occupants within 24 to 48 hours. He urged those dismissive of the problem to visit the affected Carabanchel property to grasp the impact on law-abiding residents fully.
“We need to step away from trivialising the issue of okupación in Spain,” he stated, emphasising the struggles and safety concerns faced by families living next to illegally occupied properties.
Local response and next steps
The luxury complex on Calle Excelente No. 6 is emblematic of a broader issue. For years, Carabanchel in the southern part of Madrid, has seen investments aimed at urban renewal. This includes the refurbishment of its historic centre and improvements to its cultural offerings. It is the most populous district with 274.000 residents as of 2023. The municipalities of Carabanchel Alto and Carabanchel Bajo were annexed to Madrid in 1948. However, incidents like this highlight the challenges of ensuring social cohesion in rapidly evolving urban landscapes.
Authorities are now working to dismantle the mafia network responsible for the scam. However, solutions for the displaced families remain unclear. Many of these individuals were already in precarious situations. Therefore, their involvement in the scam underscores the vulnerability of Madrid’s most disadvantaged populations.