Estepona releases land for more than 500 new affordable homes

Estepona makes a major step in solving its longstanding housing shortage. The local council gave initial approval to an urban development plan which will result in the construction of more than 500 new affordable houses. This is a vital boost for individuals and families struggling to keep pace with the demand on the local property market.

Clearing the Path for Affordability

The new plan modifies the existing urban framework of a large 655,000-square-metre plot in Arroyo Judio. The modification is particularly important because, for the first time in years, it enforces the current legislation requiring developers to set aside a portion of new projects for social protected price housing (Viviendas de Protección Oficial or VPO).

The town, it is claimed, has a chronic shortage of reserved land for VPOs because of past urban planning. Mayor García Urbano explained that previous administrations did not enforce the obligation for developers to reserve land for VPO, a practice that has unfortunately cost the town the opportunity to build over 1,500 affordable homes. According to the mayor of the town, the lack of pre-designated, available land is the primary reason why affordable housing hasn’t kept pace with demand.

New approaches for future development

Arroyo Judio’s new urban development is expected to include 1,201 homes: 683 below-market-rate houses and 518 impressive VPO units.

The council introduced a condition to ensure the construction of affordable housing without delay. Licences for market-rate units will only be issued once the affordable VPOs are also completed. The requirement for simultaneous development is a big win for the community. It ensures that much needed affordable housing will be delivered alongside other private developments.

Mayor Urbano said that it is the first time in 14 years that the government has had the opportunity to simultaneously build affordable and free-market housing, while still respecting the law.

Affordable living for a brighter future

The approval marks the first time since 2011 that the municipal corporation in place has been able approve a residential urban plan with the required VPO of 30%.

The west side of town development will include not only new homes, but also the infrastructure needed, including roads, public areas, shops, services and parking. Estepona is at a turning point, with affordable housing being the first priority. This will lay the foundation for a balanced future.