Gentrification is an urban development process whereby a traditionally low-income neighbourhood begins to attract residents with greater purchasing power, leading to both positive and negative changes for the local community. It generally takes place in older neighbourhoods which, due to their prime location, become appealing to young professionals, tourists, or artists.
With the arrival of new businesses driven by these groups, the area becomes “trendy”, attracting more residents and pushing up housing prices. Among the positive outcomes are the renovation of properties, improvements to public spaces, and a new commercial offering — cafés, galleries, coworking spaces, and so on.
However, gentrification can also lead to the displacement of the original residents, who may not be able to cope with the rising cost of living. Some examples of neighbourhoods that have experienced this phenomenon include El Raval and Poblenou in Barcelona, and Lavapiés and Malasaña in Madrid.
