Spain Launches Major Affordable Housing Project in Málaga with 1,362 New Homes Planned

The Spanish government has taken a significant step towards addressing Málaga’s housing shortage by activating the long-awaited Buenavista development, a major project that will deliver 1,362 affordable housing units in the city.

State-owned company Casa47 has officially launched the tender process for the urban development works, with an investment of €33.6 million. Construction companies have until 29 June to submit their bids, while the infrastructure works are expected to be completed within two years of the contract award.

The Buenavista project, first proposed more than two decades ago, will transform the area into a new residential neighbourhood featuring affordable housing, extensive green spaces, educational facilities, sports areas, and community amenities. In addition to the residential component, the development will include nearly 49,000 square metres of green zones, commercial spaces, sports facilities, and land reserved for two schools.

The project also includes major infrastructure improvements designed to support future growth. These include a new roundabout connecting the development to Avenida Ortega y Gasset, a planned bridge linking the area with expanding neighbourhoods near Teatinos, and provisions for a future light rail connection. Sustainable features such as rainwater collection and reuse systems have also been incorporated into the plans.

The 1,362 homes form part of a national affordable housing programme aimed at increasing the supply of rental housing at accessible prices, with rents expected to be around €700 per month. Casa47 will oversee the entire process, from land preparation and construction through to property management.

The initiative represents one of the largest affordable housing projects currently planned in Málaga and highlights the government’s commitment to increasing housing supply in one of Spain’s fastest-growing residential markets.

Source: Sur In English, May 2026