This impressive arcaded square has been Madrid's focal point since Philip II converted it into the seat of the Court in 1561. It originally served a variety of purposes: theater, civic center, market, bullring, and so on. The Casa de la Panadería and the Casa de la Carnicería, the only buildings flanked by towers, are particularly noteworthy.
Interestingly, the owners of the houses in the square were obliged to rent out their balconies during the festivities, which were packed with courtiers. In the center is the large equestrian statue of Philip III, the work of sculptor Juan de Bolonia and Pietro Tacca, dating from 1614.