Marbella’s urban development continues to surge, with the city’s Urban Planning Department approving over €60 million in construction licenses during the month of August alone.
Marbella’s Mayor, Ángeles Muñoz, had forecasted at the start of 2024 that the city would see nearly €800 million in major construction investments throughout the year. This prediction appears to be on track, with the municipality expecting to collect more than €32 million in revenue from the Construction, Installation, and Works Tax (ICIO) by year’s end—an increase of €6 million compared to the previous year.
In just one meeting of the Local Government Board on August 20, three major urban development projects were approved, totaling nearly €50 million in investments. These include the green light for the construction of 218 new homes in Nueva Andalucía, with a budget of €43.5 million. Additionally, the board approved the regularisation of a building on Alonso de Bazán Street, with a cost of €4.5 million, and the renovation of another property valued at €900,000.
Municipal spokesperson Félix Romero emphasised the importance of these approvals, noting that the resulting tax revenue for the city, calculated at 4% of the project costs, represents a significant financial boost. “This demonstrates Marbella’s continued appeal and its ability to attract substantial investments,” Romero stated. Other notable approvals during August include projects in the Las Chapas area and the Sierra Blanca urbanisation, amounting to €3.2 million.
Population growth and urban services expansion
The construction boom in Marbella is also linked to a steady increase in population. The latest figures from the city’s government report that over 165,000 people now reside in Marbella, not including the seasonal population that swells during peak times.
In response to the growing demand for urban planning services, the local government has bolstered its resources to better serve residents. Earlier this year, a new Urban Information and Advisory Office was established, which now handles an average of 250 daily inquiries through in-person, online, and telephone channels. The office, staffed by four technical experts and three administrative personnel, has significantly improved its response time since its inception, tripling its capacity to address citizen concerns.
Mayor Muñoz highlighted in SUR the importance of this service, stating, “This is an area with a heavy workload due to the dynamic nature and economic activity of a city like Marbella.” The city’s commitment to expanding urban services reflects its ongoing efforts to manage the demands of its rapidly growing population and booming construction sector.
Challenges
Marbella has encountered several challenges concerning building permits in recent years. A significant issue has been the absence of an updated General Urban Development Plan (PGOU), which has caused uncertainty and delays in the granting of permits.
Recently, new urban planning regulations have been introduced to align land use with the current needs of the municipality. These regulations aim to enhance legal certainty and streamline the licensing process.