Immortalised by the photojournalist, a decaying block of working-class flats is to become a cultural hub bearing his name

A squat, dilapidated house in southern Madrid that was bombed by the Nazis and immortalised by the photojournalist Robert Capa is to be preserved as a reminder of the suffering caused by the Spanish civil war and a testament to all those who have called its cramped rooms home.

No 10 Peironcely Street, which lies in the working-class district of Vallecas, had stood for just shy of a decade when it was pummelled by German bombers in the winter of 1936. In November or December of that year, the Hungarian war photographer recorded the damage done. His famous picture, shot on a Leica, shows three children sitting amid the rubble on the pavement outside the shrapnel-gouged house.

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