Almost 60 new social houses to be built in landmark exchange programme on eastern Costa del Sol
The company awarded the contract will return some of the housing to the regional government as part of the payment for the land in Algarrobo-Costa
Eugenio Cabezas
Tuesday, 17 February 2026, 13:59
The Andalusian regional government has awarded the public plot of land located in the Pantano de Oliveros area of Algarrobo-Costa, on the eastern Costa del Sol, to Aljonoz S.A., for the construction of 57 subsidised homes.
The plot, owned by the Andalusian housing and rehabilitation agency (AVRA), covers an area of 4,217 square metres. The regional minister for development, Rocío Díaz, said a statement that this award represents "a new milestone in the housing policies promoted by Juanma Moreno's government".
She highlighted the release of public land that "had been unused for decades". The regional minister defended the exchange system, which has been agreed with Aljonoz and means that the company will return some of the housing to the regional government as part of the payment for the land.
The development will ultimately comprise 57 homes, nine more than initially planned. This increase has been made possible following Algarrobo town hall's adherence to the decree on urgent housing measures approved by the regional government, which allows for an increase in construction on certain land designated for social housing.
Criteria includes a reduction in the deposit that the buyers will be required to pay to secure one of the homes, greater flexibility in the payment and a reduction in the sale price of the homes and associated annexes. This is an aspect that the regional government has sought to highlight in a context marked by rising house prices on the Costa del Sol and difficulties in accessing housing for young people and families on average incomes.
The project in Algarrobo is part of a broader strategy by the Andalusian government to build more than 600 social housing units through the same exchange system. According to Díaz, developments have already been carried out under this formula in Cordoba and Huelva and new projects are planned in Granada and Jerez de la Frontera.
The Pantano de Oliveros development represents one of the main pockets of social housing underway in the Axarquía, where residential pressure linked to tourism and the foreign market has put particular strain on access to permanent housing in recent years.
