At one time - may still be the case - many areas of Barcelona had rules that stated you could only replace apartments  with pretty much the same  footprint/density. 

This was done to preserve affordability and character.  It worked.  Owners then looked after the buildings, because the value was not just in  what it could be worth with a future 30 stories of condos.

When it comes to "small living" comparing Canadian cities  to European cities is like comparing apples to oranges.

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