Estepona awards land for 39 affordable homes to Barcelona developer for just €22,100

Estepona Town Council has awarded a publicly owned plot of land for just €22,100 to a private developer planning to build 39 officially protected homes (VPO). The successful bidder is AI HUT, S.A., a Barcelona-based property development company whose offer was only slightly above the minimum price established in the tender.

The award was formalised through a mayoral decree dated October 26, 2026, and concerns a plot located in Camino de Cortes Norte, an area where several protected housing projects are being developed.

The agreed price, excluding applicable taxes, is particularly striking when compared with the maximum amount established in the tender: €890,621.33. However, the procurement conditions expressly allowed bids within this price range, meaning the award was not made below the minimum permitted amount.

The plot forms part of a wider municipal operation involving 199 protected homes across two separate residential developments.

A Barcelona developer will build 39 protected homes in Camino de Cortes Norte

AI HUT, S.A. has been awarded the second lot included in the municipal procedure for the sale of publicly owned land.

The plot, identified as VP.02 in the SURS E-11 Camino de Cortes Norte sector, is intended for the construction of 39 officially protected homes.

The operation forms part of Estepona Town Council's strategy to make municipal land available for residential developments subject to affordable housing regulations.

The tender did not involve the council directly commissioning the construction work. Instead, it concerned the sale of municipal plots to private developers, subject to the obligation to build the protected housing specified in the project.

Under this arrangement, the successful companies will be responsible for developing the homes in accordance with the relevant planning, administrative and financial conditions.

The award represents progress in the project's administrative process, although it does not mean that construction has begun or that the homes are already available for applications.

The land was awarded for just €100 above the minimum tender price

One of the most notable aspects of the transaction is the amount offered by the developer.

Estepona Town Council had established a minimum price of €21,999.56 and a maximum of €890,621.33 for the plot intended for the 39 homes.

The successful offer was €22,100, representing a difference of just €100.44 above the minimum amount.

In percentage terms, the bid exceeded the minimum threshold by approximately 0.46%.

The gap between the winning offer and the maximum tender price is considerable, although both figures were included in the terms established by the council.

The €22,100 therefore represents the price awarded for the land, not the cost of constructing the homes or the amount future buyers will be expected to pay.

Construction costs and final property prices are separate matters that will depend on the project's development and the applicable protected housing regulations.

The developer offers a 0.010% reduction in the price of the homes

The municipal tender also included a criterion relating to the selling prices of the future properties.

Alongside the financial offer for the land, interested developers were required to propose a reduction from the maximum legal or reference price applicable to the protected homes.

In its bid, AI HUT proposed a reduction of 0.010% per square metre from that reference price.

Although this represents a very small reduction, it forms part of the financial conditions offered by the successful bidder.

According to the published information about the award, the reduction must also apply to associated property elements under the conditions established in the tender.

Estepona Town Council had previously stated that one of the objectives of the procedure was to secure the lowest possible final prices for buyers within the applicable legal limits.

However, the selling price of each home has not yet been announced, making it impossible to calculate the precise savings future buyers might receive.

Another 160 protected homes are planned in the same area

The plot awarded to AI HUT is only one of the two included in the wider municipal land sale.

The other plot, identified as VP.01, is intended for a development of 160 officially protected homes.

In this case, the municipal procurement committee proposed awarding the land to Palladium Homes 1920, S.L., according to an announcement made by Estepona Town Council on October 14.

For this larger residential plot, the tender established a minimum price of €232,287.50 and a maximum of €3,412,972.08.

Both plots are part of the same development area in Camino de Cortes Norte, although they will accommodate separate residential projects.

Together, the two plots could provide 199 protected homes, provided the necessary administrative procedures are completed and the developments proceed as planned.

The 39-home project was covered by a specific award decree dated October 26. The official information consulted does not establish that the 160-home plot had necessarily reached the same administrative stage.

Camino de Cortes is becoming a focus for new affordable housing

The development forms part of a broader housing strategy in Camino de Cortes, where Estepona Town Council is promoting several residential projects.

In addition to the 199 homes planned on the two plots included in this tender, the council has reported that building permits are being processed for another 117 protected homes in the same area.

These additional properties are divided between two developments comprising 84 and 33 homes.

Combined, the announced projects in the area account for 316 protected homes, although they are not all at the same stage of development.

Some are awaiting building permits, while others have progressed through the land allocation procedures.

This distinction is important because awarding a plot does not necessarily mean that construction will begin immediately.

The town council has also stated that it is working on plans for approximately 1,200 protected homes across Estepona in the short and medium term.

That figure refers to the municipality's housing development plans, rather than properties already built or available to purchase.

Who will be eligible for Estepona's new protected homes?

One of the main questions for residents is who will be able to apply for the 39 homes and what financial conditions will apply.

For now, the published information about the land award does not establish a marketing date, individual property prices or an open application procedure for prospective buyers.

The properties will have to comply with the officially protected housing category applicable to the development.

In general, Spanish protected housing is subject to regulated sale prices and eligibility criteria, which may include household income limits, restrictions on owning other properties and requirements to use the home as a main residence.

However, the exact rules can vary depending on the housing category and the conditions established for the development.

Interested residents will therefore need to wait for further official information about the properties and the procedure for applying.

No construction start date or expected completion timetable has been confirmed for the 39 homes.

When will construction begin on AI HUT's 39 homes?

The award of the land represents an initial step towards making the development possible.

Following the transfer of the plot, the residential project will need to meet the relevant planning and administrative requirements, including any permits necessary before construction can begin.

The available information does not specify whether a final architectural project has already been approved or when building work is expected to start.

Details such as the size of the properties, the number of bedrooms and their layouts have also not been released.

Consequently, it would be premature to announce a completion date or selling price for prospective buyers.

Further progress will depend on the administrative process and future information published by the town council and developer.

Estepona aims to increase its supply of protected housing

The award forms part of the municipality's efforts to increase the number of homes available under official housing protection schemes.

Estepona Town Council has been working to obtain and make land available for residential developments with regulated prices.

Making publicly owned land available for this type of project can help facilitate new construction, although its impact on housing accessibility will depend on whether the homes are completed and the conditions under which they are sold.

In Camino de Cortes Norte, the council has chosen a procedure involving the sale of municipal plots to private companies responsible for developing the homes.

A reduction from the maximum legal selling price was included among the tender criteria, with the stated intention of benefiting future buyers.

However, the 0.010% reduction proposed for the 39-home development means the final property prices will need to be confirmed before the financial impact on buyers can be properly assessed.

Another step towards more affordable homes in Estepona

The award to AI HUT represents further progress in the administrative process for the protected housing planned in Camino de Cortes Norte.

The developer secured the land for €22,100 plus applicable taxes, an amount only slightly higher than the minimum allowed under the municipal tender.

The plot is intended for 39 officially protected homes, which will form part of a wider group of residential developments in the same area.

The operation is included in a broader strategy involving 199 homes on two municipal plots and another 117 properties progressing through different administrative procedures nearby.

The next challenge will be turning these land awards into completed homes that residents can actually access. For now, there are no confirmed completion dates or sufficient information for prospective buyers to apply for the 39 properties awarded to AI HUT.