In calle de Manuel and calle de Duque de Liria, just 100 meters from the Palacio de Liria —owned by Casa de Alba—, there are no vehicles of Belgian or Dutch origin. However, a new warning from the 16th century, created in the Netherlands to welcome children who misbehaved, upset the heads of about 75 families who have been building the manzana, made up of five gates, over the past few weeks. “Que viene el duque, que viene el duque,” said the smallest, softened by the severity of Fernando Álvarez de Toledo, the 3rd Duke of Alba, during the Flanders War. Five siglos later, it is not the hard hand of Fernando Álvarez de Toledo that is frightening, but the real estate projects of his successors, the current Duke of Alba, Carlos Fitz-James Stuart Martínez de Irujo and, above all, his son Fernando Fitz-James Stuart, Duke of Huéscar, last heir to the ducal house:
—Did you also receive the letter?—the old men asked themselves.
The letter to which you refer is a notification in the form of ordinary mail that appeared less than a month ago on the buzzers of the portals, sent by the new director, a company called Bala Investment created in May 2025 and chaired by Enrique Dancausa Treviño, brother of Concepción Dancausa Treviño, who was advisor for Family, Youth and Social Policy of the Community of Madrid to Isabel Díaz Ayuso. The document, signed by the CEO, Javier Zarrabeitia, announces that, “for technical reasons and rehabilitation of the buildings”, the rental contracts will not be renewed upon their expiration and tenants are invited to leave in an “orderly” manner in the coming months. According to residents’ estimates, between 40 and 50 will be delivered.
After learning in 2024 that the Casa de Alba had begun a process of renovating another historic building, also of its own property, next to the Palacio de Liria, to reconvert its use—which has since been dedicated to workshops—into tourist floors that will be managed by José María Aznar Botella—his wife of José María Aznar—, the years ended in fear. that they would “continue to be displaced.” For this operation it was necessary to approve a special and specific urban plan for each building by the Madrid City Council, which was adopted by the Plenum of Cibeles, and thanks to which we ended up granting the Casa de Alba the tourist use license for future properties.
In this report, no one in the past has wished to appear under their own name in the publication of personal data “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 of Manuel Street, as well as numbers 4 and 6 of Duque de Liria Street, historic buildings dating from 1929, have always belonged to Casa de Alba. For decades, the houses were intended for “trusted” families, as a former manager who worked hand in hand with Cayetana Fitz-James Stuart, the late Duchess of Alba, explains. The tenants were at various times his own mayordomos, his bosses and other employees of the Palacio de Liria. There were also family members, acquaintances or employees of the companies that operated in the old workshop building. “A very closed circle. The houses were not advertised. The Duchess wanted trusted people to be present. She had to have a personal interview because, above all, families were sought after for large-scale housing. The quality (the relationship) was very good. They were not looking for speculation”, explains David, a tenant who went to work in one of these workshops and establish a relationship of trust with one of the building managers. “There was a waiting list,” he continues.
The death of the Duchess of Alba in 2014 marked a before and an after. Carlos Juan Fitz-James Stuart Martínez de Irujo became Alba’s new big leader and a change began in building management policy. According to documents provided by the Land Registry, Carlos had acquired these buildings through a “donation by public deed” on July 4, 2011. “Relationships were changing. The open floors were replaced by foreign students who occupied them during classes,” explains David. The definitive turning point was the moment when Carlos delegated the administration of the properties to his children, notably to Fernando Fitz-James Stuart. Among other things, he said goodbye to the Duchess of Alba’s former trusted managers. “Since then they have ignored us, there have been problems in the building and there have been delays in arrangements wherever possible. The statement is not spending more money,” David said.
The buildings on Calle de Manuel and Calle Duque de Liria range from 45 to 90 square meters, with one or three rooms. The current rental price, in the location of the villa, is between 1,000 and 1,500 euros, well below the market price in the area. For example, in a student residence next to Plaza de Cristino Martos, the cheapest accommodation costs 1,200 euros per month. The most common profile of families with elderly and elderly people. Turning these properties into tourist rentals could “triple or quadruple the profits”, according to a real estate expert in the region who also wishes to put his name forward.
The first clue that something was itching in Alba’s insides was the visit to two architect studios over the past three years. The latter, Morph Arquitectos, will be responsible for undertaking the rehabilitation project of certain buildings which, “of course, require a thorough update”, specifies the same expert. Morph Arquitectos declined to answer questions about plans for Casa de Alba. But finally, information about the project was obtained through the various architects’ studies that they visited to measure their houses. “What came to us is that we are looking to transform it into student residences or tourist floors, the proposal to rehabilitate the building goes in this direction. Otherwise, it makes no sense,” says Gonzalo. Besides letters to families, the ducal household is also in contact with businesses located in the lower courts, such as an Arabic restaurant called Aladino and a crossfit gym. “We say we need to talk to us. We know where the shots are coming from,” they say.
“It’s a shame. The great tenedores change the typology of the city to that of their ancestor, with leyes hechas to the extent of their speculative businesses and without anything left. They charge you with families, with entire lives, to continue expanding your empire. It’s a social theme. Less of the same. It doesn’t matter if we plan to become tenants. We don’t serve them”, if it’s Mateo, another Vecino.
The Dukes, through their communications agency, confirm “the start of a process of non-renewal of rental contracts in a set of properties owned by D. Carlos Fitz James near the Liria Palace” with a “commitment to the updating and preservation of these historic buildings”. “The dialogue with our tenants is managed in an individualized, transparent and voluntary manner,” he added. However, they also don’t give anything about the next business plan. “No decision has been made regarding the future use or final destination of the properties,” he assures.
The relationship between the mayor of Madrid, José Luis Martínez-Almeida, and the Casa de Alba is long, even familial. Fernando Fitz James, went to the regidor’s wedding, because, among other things, his wife, Sofía Palazuelo, is the cousin of Teresa Urquijo, Almeida’s wife. Fernando’s business depends to a large extent on the licenses which grant him the alcalde.
According to the Reside Plan, the Ayuntamiento’s flagship measure to regulate tourist floors, licenses will only be granted to owners of complete buildings or to a group of owners who agree to operate the same block with this formula. “The Reside Plan has opened up the possibility of thousands of buildings in Madrid that until now could not be transformed into hotels or tourist floors,” denounces Antonio Giraldo, PSOE urban planning spokesperson at Madrid City Hall. “The Duque de Liria buildings 2 and 4, as well as Calle de Manuel 3, before the Hubieran Resident Plan, could be transformed into tourist floors. Now, for 15 years, it was possible to obtain a license for the condition of rehabilitation of the building, which is in accordance with the letter that seems to have reached them,” he added. However, numbers 5 and 7 of Calle de Manuel, corresponding to one of the oldest corridors in Madrid, “have a superior catalog” and require a “special plan in advance” and could be transformed into a villa for tourist use or a hotel “forever”.
“It is an uncontrolled recalibration of the city. It does what we warned when approving the Reside Plan. With this plan, 78% of the buildings in the historic center of Madrid have the possibility of being transformed for tourist purposes. This favors the massive expulsion of buildings, especially of all those that are rented,” Giraldo said. Madrid City Hall, for its part, did not wish to comment on this subject.
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