Estepona Advances Plans for Hundreds of New Subsidised Homes

Two companies bid for plots to build 199 VPO, marking a step forward in the town's goal to increase affordable housing options

For many residents, finding affordable housing in Estepona remains a challenge. The Town Hall is making progress on its commitment to increase the supply of subsidised homes, known as VPO, with new developments moving forward.

New Developments Underway

Estepona Town Hall reports that two companies have submitted bids for the tender of two municipal plots. These plots are intended for the construction of 199 subsidised homes (VPO) in the Camino de Cortes area. This process marks the start of the alienation of this municipal land. Two VPO developments have been planned: one with 160 homes and another with 39 homes. The contracting committee will prioritise the lowest final price for buyers of these homes as an award criterion.

Broader Strategy for Affordable Housing

The Town Hall is currently processing the construction of 1,200 subsidised homes in the short to medium term. For the past decade, work has been underway on the administrative procedures needed to acquire land for protected housing. This municipal commitment has enabled the construction and delivery of approximately a hundred subsidised homes in the Juan Benítez area. It has also driven the development of urban planning to secure more land in other parts of the city.

In addition, a building licence for a total of another 117 subsidised homes is already being processed. These are divided into two developments of 84 and 33 homes, also in the Camino de Cortes area.

Furthermore, the Town Hall approved the compatibility of use for a total of 36 municipal plots in the Council Plenary session held in February 2026. These plots can be allocated for the construction of protected housing. This was made possible by the Town Hall's adherence to Decree-Law 1/2025 on urgent housing measures, approved by the Junta de Andalucía, which aims to promote VPO construction. Based on the parameters outlined in Estepona's General Urban Development Plan (PGOU), these plots, distributed throughout the municipality, could allow for the construction of a total of 738 homes.

The Town Hall also continues to work on other urban development promotion projects. These will enable the construction of 300 subsidised homes in Camino de Monterroso and another 800 in the Guadalobón and Arroyo Vaquero areas.

Unanswered Central Government Proposal

The Estepona Town Hall also agreed to make six municipal plots available to the central government. These plots have the capacity for the construction of 109 subsidised homes. However, no response has been received from the central executive. These plots have uses compatible with protected housing projects and are located in areas such as Casas del Padrón, Llanos de la Boladilla, and Camino de Cortes. This municipal proposal responds to the Spanish Government's announcement to mobilise up to €23 billion in public and private funds. This aims to boost housing supply and finance the construction of 15,000 units annually across Spain through the 'España Crece' fund.

Historical Context of VPO Development

It is worth noting that Estepona previously lost the opportunity to construct over 1,500 subsidised homes. This was between 2005 and 2007, when socialist governments were in charge of the Town Hall. During this period, a total of 13 partial plans were initially approved for the private sector to build over 5,000 homes. Had regional legislation been applied, the Town Hall should have required these developers to reserve land in their urban projects for subsidised housing. However, the political leaders at the time chose to expedite approval procedures for builders. They took advantage of a transitional provision of that law during those years, meaning developers ultimately did not have to allocate 30% of their developments to protected housing, as required by the LOUA.