Barcelona’s Gràcia neighbourhood is at the centre of a new planning setback after the High Court of Justice of Catalonia (TSJC) annulled a 2022 modification of the General Metropolitan Plan (PGM) for urban and environmental improvement.

The court ruled that the plan did not offer enough economic incentives for the private sector to build social housing. It sided with an administrative appeal brought by the Barcelona Urban Property Chamber, the College of Property Administrators Barcelona-Lleida, the College of Real Estate Agents of Barcelona and Province, the Association of Real Estate Agents of Catalonia, and the Association of Property Developers and Builders of Catalonia.

The appeal argued that the plan’s aims were legitimate, but that its methods were not viable. Xavier Vilajoana, president of the Association of Property Developers and Builders of Catalonia, said the lack of specific analysis for Gràcia’s core could lead to fewer projects, less rehabilitation and, in turn, less housing available.

The contested plan included several proposals, among them splitting 160 m² flats into two parts, one for protected housing and one for market-rate housing. An expert report submitted by the plaintiffs said this did not meet the requirement for economic viability, and noted that there are few 160 m² flats in Gràcia that are not duplexes, which would make separate access to each new home difficult.

The report also examined the viability of three measures in the plan. It said new buildings between 400 and 600 m², which would have to allocate 30% of their area to protected housing, could be viable as real estate operations, but would not comply with urban planning law because the economic return must be higher than under the current rules. It also said converting commercial premises into protected housing would cause significant losses and that few premises meet the required habitability conditions.

The TSJC accepted the appeal and overturned the plan. The organisations behind the challenge said the objectives were legitimate, but that the rules must be legally sound and shaped through dialogue between the public and private sectors, including the agents needed to carry them out. For more Catalonia-wide planning coverage, see News.