Golden Mile opportunity: Marbella to build subsidised homes in luxury heartland

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Developers Sierra Blanca Estates secure permit for affordable housing on one of Spain's most exclusive stretches of real estate

José Carlos García

Marbella

Friday, 27 February 2026, 12:15

IN A move that breaks the mould for one of Europe's most glamorous postcodes, property developer Sierra Blanca Estates has been granted permission to build subsidised housing in the heart of Marbella’s Golden Mile.

The town council has green-lit the construction of the first 25 "affordable" apartments in Arroyo Palomeras, a district usually synonymous with expansive villas and high-end apartments. The €6 million project marks the start of a wider initiative to tackle the housing crisis in the municipality.

Affordable living in a millionaires' playgound

The new homes, categorised as VPO (Vivienda de Protección Oficial), will measure between 75 and 85 square metres. While they are priced for local residents rather than international oligarchs, the developer is maintaining a "Marbella standard" of living, including:

• Underground parking and private storage rooms.

• Shared facilities: A communal swimming pool and landscaped garden areas.

• Centrality: Proximity to the core services and luxury amenities of the Golden Mile.

A spokesperson for Sierra Blanca Estates stated that the project is a direct response to the "growing need to promote affordable housing in the municipality," where surging property values have increasingly priced out local workers and young families.

The Arroyo Palomeras development is only the first phase of a 375-home commitment. The developer has confirmed plans for a further 270 units in Hacienda de Cortés and 80 units in El Bulto, significantly increasing the stock of price-controlled housing in the town.

A decisive step for local residents

The granting of the building licence is being hailed as a "decisive step" by the developer. By integrating subsidised housing into the most expensive and exclusive areas of Marbella, the town is attempting a rare social balance, ensuring that those who keep the tourism and service sectors running can afford to live within the community.