Costa del Sol’s relentless construction push tests regional limits

Costa del Sol construction boom strains region

by Lorraine Williamson
Costa del Sol construction boom

Across the Costa del Sol, cranes once again dominate the skyline. The region is experiencing one of its most intense development cycles since the early 2000s, transforming coastal towns at astonishing speed. Yet beneath the momentum lies growing unease: the Costa del Sol construction boom is outpacing the roads, public services and environmental safeguards meant to contain it.

Twenty years after Andalucía introduced strict growth limits, municipalities from Manilva to Vélez-Málaga are approving developments that would have seemed unthinkable when the rules were written. Some towns are now planning for populations twice as large as today’s. The pressure on water supplies, congested roads and stretched healthcare services is already felt by residents year-round, not only in summer.

How a plan meant to stop sprawl lost its grip

When the Junta de Andalucía created the Plan de Ordenación del Territorio de Andalucía (POTA) in 2006, the goal was clear: halt the uncontrolled sprawl that had reshaped the coast in the decades before the financial crisis. Towns were capped at a maximum 30% population increase based on their 2006 figures, a measure designed to protect landscapes, coordinate infrastructure, and prevent municipalities from acting alone.

But as the Costa del Sol rebuilt its global profile after the recession, the limits became increasingly difficult for councils to uphold. Fast-growing areas such as Estepona and Manilva have already mapped out developments that would far exceed the original boundaries. According to El Español, more than half of Málaga province’s coastal municipalities now have plans on the table that break POTA guidelines.

In practice, the framework has become outdated faster than it could be updated. The Junta began a full revision in 2024, but until the new rules are approved, councils are pressing ahead in a legal grey zone.

Málaga’s building drive shows both ambition and strain

Few places capture this tension as sharply as Málaga. The city’s 2026 budget commits €29 million to more than 2,200 new homes, part of a wider push expected to deliver more than 5,000 units. Former commercial premises are being transformed into apartments, and the council has announced new rental housing priced between €450 and €600 to relieve years of market pressure.

But each step forward reveals a new obstacle. A recent refusal from Spain’s Ministry of Transport blocked a proposed access road linking Adolfo Suárez Boulevard to the MA-20 motorway. Planners argued the junction would sit too close to existing exits and compromise safety. Whether technical or political, the decision underscores a bigger story: the city is expanding faster than its infrastructure can absorb.

House prices leap while supply falls behind demand

Despite the wave of construction, the market remains overheated. In Málaga province, asking prices now average around €3,850 per square metre, driven by persistent foreign demand, the region’s prestige, and the lack of affordable stock. For local workers, many of whom face seasonal contracts or modest salaries, the dream of buying a home is drifting further out of reach.

A landscape under pressure — and occasionally pushing back

Even when new developments advance, the land itself can intervene. In Málaga, plans for a new urban park were recently halted when Roman-era remains were unearthed on-site. Archaeological discoveries are not uncommon along the coast, adding another layer of complexity to already overloaded planning systems.

These interruptions highlight a broader reality: the Costa del Sol is running out of space that is both legally and practically viable for large-scale development. Water supply, mobility, green areas and cultural heritage now form the boundaries growth must navigate.

The uncertain road ahead

The Junta’s revised POTA is expected to offer a more flexible but firmer framework — one that recognises population growth yet safeguards the coastline’s environmental and social well-being. But until the update is published, towns continue to expand with little more than outdated guidelines and political momentum steering the way.

The dilemma is no longer theoretical. The Costa del Sol construction boom continues, yet the region’s carrying capacity is under visible strain. Whether the next decade brings balance or breakdown will depend on how quickly Andalucía can align ambition with the limits of the land.

Sources:

El EspañolCadena Ser

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