Affordable housing investment continues to gain momentum on the Costa del Sol.
A&G Global Investors has announced a €43 million investment to develop 125 protected affordable rental homes in Estepona, reinforcing efforts to tackle the growing housing shortage across Málaga province.
The development, which is expected to be completed by 2029, will be financed through a combination of private capital, bank financing and €9 million from the European Regional Resilience Fund via the European Investment Bank. The project will be delivered by Obra Nueva.com as the delegated developer.
The scheme will feature one, two and three-bedroom apartments, alongside private parking, storage rooms, landscaped communal gardens and green spaces. As protected housing, the homes will be offered at regulated rental prices below current market rates, with rents adjusted in line with inflation to help maintain long-term affordability.
A key advantage of the project is its location on land made available under Andalusia’s Decree-Law 1/2025, legislation introduced to accelerate the delivery of affordable housing across the region and increase the supply of much-needed rental properties.
The investment comes at a time when Málaga continues to experience significant housing pressure. According to figures referenced by A&G, based on data from the Bank of Spain and Spain’s National Statistics Institute, the province has accumulated a shortage of more than 26,000 homes over the past five years, as population growth has consistently outpaced new residential construction.
This development forms part of A&G’s wider strategy to expand Spain’s affordable housing sector while promoting sustainable urban growth through public-private collaboration.
NLS Conclusion
The launch of this project highlights the increasing importance of affordable housing investment across the Costa del Sol. As demand continues to rise and supply remains limited, initiatives like this play a vital role in creating more accessible rental opportunities while supporting the region’s long-term growth. For real estate professionals, it also reflects a growing commitment to delivering sustainable housing solutions and strengthening the future of Málaga’s property market.
