Marbella Town Hall has approved a major new affordable housing project in San Pedro de Alcantara, consisting of 132 protected flats in the town’s southern expansion zone.
The €13.1 million development, to be built by local firm Nogainver, will deliver two residential blocks of 66 homes each, complete with underground parking, storage rooms, shops, private green areas and a shared swimming pool.
Crucially, the properties will be protected rental-only units, meaning they cannot be sold on the open market.
Announcing the move after a meeting of the Local Government Board, San Pedro’s deputy mayor Javier Garcia said construction would begin ‘immediately’. He stressed the project was a direct response to the region’s housing crunch.

Who can rent them?
As ‘viviendas protegidas en regimen de alquiler’, the new homes are subject to strict rules set by the Junta de Andalucia. Applicants must:
- Be legally resident in Spain and registered (empadronado) in the municipality.
- Fall within set income brackets – typically lower income families who cannot afford market rents but do not qualify for social emergency housing.
- Not already own another property in Spain.
- Commit to using the property as their permanent and habitual residence, not as a second home or investment.
Town Hall officials say priority will be given to young people, first-time households, and families on moderate incomes struggling with the area’s soaring rental costs.
Anyone looking to be considered must apply at the town hall.
The 132 flats will sit on a 6,000-square-metre private plot on Calle Manuel Gonzalez Portilla, flanked by the boulevard to the north, La Azucarera secondary school to the west and a public housing scheme of 84 homes to the south.
Each block will follow the area’s planning rules – ground floor, three upper levels and penthouses – with 22 different layouts on offer, but without pushing beyond current building limits.
More public housing in the pipeline
Garcia revealed that another licence is expected to be granted in the coming weeks for 40 additional protected homes in San Pedro, on the same site where 84 public flats are already under construction.
Those 84 units, currently being built, have already attracted over 3,000 applications, with the Town Hall promising to hold the lottery for them before the year is out. Meanwhile, a further 143 homes are planned near the Carretera de Ronda.
‘In 2022 we drew up a municipal plan to create 400 public homes in San Pedro in the short term,’ García said, adding that medium-term urban developments will also be required to set aside land for public housing.
A growing community
The new housing push comes amid a wave of investment in San Pedro’s southern expansion. In recent years the area has seen the construction of La Azucarera high school, the Sergio Scariolo sports hall, and a soon-to-be-built School of Music and Dance.
Town Hall chiefs insist the latest affordable rental project is another step towards balancing a market otherwise dominated by high-end second homes and luxury developments.
Read more Costa del Sol news at the Spanish Eye.

