Reverse gentrification: city centres decline while prices keep rising

Reverse gentrification: city centres where prices rise but society declines

The phenomenon has been brewing for years, but the pandemic accelerated it: city centres in small and mid-sized towns are losing their native population and gaining tenants with fewer resources, while rents refuse to fall. Decline or touristification? The debate pits those who see lumpenisation against those who point out that prices remain prohibitive.

The uncomfortable concept

Classic gentrification (the arrival of upper classes that push out lower ones) has its reverse: when urban centres fill up with people of lower purchasing power, often immigrants, and local businesses change hands. The term "reverse gentrification" or "lumpenisation" describes this process. A 1993 message in El País already warned of the physical decay of city centres, but the social factor has peine over the past decade.

From Chueca to Alicante: cycles that repeat

Historical examples illustrate how once-marginal neighbourhoods gained value. Chueca square in Madrid went from being a "mini-banlieue" with drug trafficking in the 1980s to a fashionable district where tiny flats now cost 1,000 euros. In Alicante, Plaza de Correos went through a similar process: first occupied by prostitution and drug dealing, later "cleaned up" and gentrified. The cycle suggests that today's decline in mid-sized cities could be the prelude to future gentrification… or not.

Immigration, wages and housing: the Gordian knot

The link between immigration and decline is the most thorny point. Those who defend the lumpenisation thesis argue that the mass arrival of immigrants – many in precarious situations – pushes former residents to the outskirts, because rents rise when several workers share a flat. At the same time, that same group is accused of "wrecking wages" by accepting worse working conditions. From the other side, the reply is that the problem is not immigration, but touristification and the lack of public housing.

The price paradox

In central Madrid, for example, the price per square metre has kept rising. It is hard to speak of decline when rents are through the roof. But in cities like Cuenca, Ávila or Segovia, the historic centre has indeed seen long-standing shops replaced by businesses run by immigrants, and a growing presence of homeless people or antisocial behaviour. Is it decline or simply a demographic shift?

Conclusion: an open question

Reverse gentrification still lacks conclusive studies. What seems clear is that urban centres are undergoing a transformation that does not fit the usual narratives. While some speak of lumpenisation and others of selective touristification, the available data suggest that the housing crisis and job insecurity are the common underlying factor. Where will Spain's cities go from here?