Estepona is taking a big leap toward solving its long-standing housing shortage. The local council has given initial approval to a major urban development plan that will lead to the construction of over 500 new affordable homes, a crucial boost for families and individuals struggling to keep up with demand in the local property market.
Clearing the path for affordability
The new plan modifies an existing urban framework for a large 655,000 square metre plot in the Arroyo Judio area. 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).
It has been claimed that the town has suffered from a chronic lack of reserved land for VPOs due to past urban planning decisions. 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. The lack of available, pre-designated land has been the main reason, according to the mayor, why new affordable housing hasn’t been built to keep pace with demand.
A new approach for future development
The new urban development in Arroyo Judio is expected to accommodate a total of 1,201 dwellings: 683 lower than market-rate homes and an impressive 518 VPO units.
To ensure that the affordable homes are built without delay, the council has introduced a crucial condition: licences for the market-rate homes will only be granted once the affordable VPO units are also complete. The simultaneous development requirement is a major win for the community, guaranteeing that the much-needed affordable housing is delivered along with other private developments.
Mayor Urbano has stressed that this is the first opportunity in 14 years for the current government to mandate the simultaneous construction of free-market and affordable housing while fully respecting the law.
A brighter future with more affordable living
The approval is the first urban residential plan the current municipal corporation has been able to approve since 2011 that includes the required 30 per cent VPO reserve.
The development in the west of the town will not only create new homes but also include the necessary infrastructure, such as roads, public spaces, shops and services, and parking. This will be a decisive turning point in Estepona’s housing strategy, putting affordable homes first and laying the groundwork for a more balanced future for its residents.