Fuengirola Approves Cerro del Agua Planning Study for 111 Affordable Homes
Real Estate Fuengirola

Fuengirola Approves Cerro del Agua Planning Study for 111 Affordable Homes

By Costa del Sol News 2 October 2026 2 min read

Fuengirola Town Hall has given the green light to a planning study in Los Pacos that paves the way for 111 subsidised apartments.

Fuengirola Town Hall has approved an urban planning study that clears the way for 111 official protection homes (VPO) in the Los Pacos district. The municipal council meeting on Wednesday greenlit the detailed scheme for the Cerro del Agua sector, designated as SUNC-13 in the town's general urban plan.

Unlocking Land in Los Pacos

The vote moves the hillside plot near Los Pacos into active development status, answering intense calls for attainable housing in a municipality where usable land has almost completely run out. The planning approval sets the strict architectural parameters, layout, and building heights required before construction companies can apply for ground-breaking licences.

Fuengirola has experienced intense upward pressure on residential real estate, with private sale prices pushing past historic ceilings. Developing publicly backed homes on municipal plots provides a crucial escape valve for local families, essential workers, and younger couples who find themselves priced out of market-rate coastal apartments.

Balanced Real Estate Expansion

The Cerro del Agua scheme focuses entirely on subsidised developments, contrasting sharply with the luxury high-rises dominating much of the coast. For buyers seeking prime private investments and off-plan properties in neighbouring western districts, agencies such as Marbella New Homes continue tracking robust international activity, but local authorities recognise that residential sustainability depends on municipal housing stocks.

Opposition voices during the plenary session raised procedural and architectural questions regarding the sector's exact density, yet the ruling conservative majority pushed the measure through. The town hall stressed that municipal planning tools must be deployed proactively to counteract soaring open-market price tags across Fuengirola.

Next Steps for Construction

With the detailed urban study passed, the council will finalise the development agreement and tender out the plot's basic urbanisation, including road connections, underground power conduits, and public lighting. Once the site is prepared, construction contracts for the 111 VPO units will be awarded under fixed delivery timelines, giving local applicants a clear path to secure long-awaited homes.

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