A&G Global Investors announces the development of a complex comprising 125 social housing units for affordable rent in Estepona (Málaga). The development, which is subject to a rent cap, is situated in the very heart of the Costa del Sol, one of southern Europe’s most established residential and tourist destinations. The project forms part of the strategy of the urban regeneration and sustainable tourism fund managed by A&G, which aims to address the structural shortage of affordable housing in the province.
To carry out the project, A&G will invest alongside a group of private investors and will rely on Obra Nueva.com -a national property developer with over 25 years’ experience and delivered more than 10,000 homes- as the development’s assigned developer.
Through its A&G Real Estate Sustainable Developments SICC S.A., A&G will contribute €9 million to the operation, drawn from the Regional Resilience Fund (RRF) resources allocated by the European Investment Bank (EIB) under the Recovery and Resilience Facility (RRF). This capital, combined with that of private investors and bank financing, will enable a total investment of €43 million to be mobilised, reinforcing the impact of European funds on the residential market.
The project: 125 affordable rental homes on the Costa del Sol
The residential development will comprise one, two and three-bedroom flats, including parking spaces and storage rooms, as well as green spaces and facilities meeting high standards of efficiency and sustainability. Completion is scheduled for 2029.
The residential units will be offered under a rent-controlled scheme, with rents regulated and indexed to inflation. These rents will be substantially below free-market levels in the area, providing a particularly relevant solution in terms of affordability in a market characterised by significant price pressures. The project takes advantage of the legislative initiative by the Regional Government of Andalusia (Decree-Law 1/2025), which allows for the development of affordable housing on land zoned for commercial use, a key measure to accelerate the creation of supply in markets with high demand.
Costa del Sol: from structural imbalance to opportunity
According to estimates based on data from the Bank of Spain and the National Institute of Statistics, the province of Málaga has accumulated a housing shortfall of 26,105 homes over the last five years, reflecting the growing mismatch between the formation of new households and the available housing supply. Against this backdrop of structural tension, Estepona -fully integrated into the Costa del Sol and with strong international connectivity, with Málaga-Costa del Sol Airport around 60 minutes away- is experiencing sustained demand for housing, which the project directly helps to meet.
In response to this imbalance, the project provides a concrete solution: channelling institutional investment towards the creation of affordable housing in one of the areas with the highest demand in the country, combining the rigour of professional capital with the aim of achieving measurable social impact.
Jaime Trigo, Managing Director at A&G Global Investors, comments, “Estepona perfectly embodies the rationale behind our strategy: to deploy institutional capital to create affordable and sustainable housing in markets with a clear structural shortfall, thereby generating measurable social impact. Furthermore, this transaction is fully in line with the geographical diversification required by our mandate with the EIB.”
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Through its A&G Real Estate Sustainable Developments SICC S.A., A&G wi...
