Three municipal plots will be auctioned for more than €21 million, paving the way for 255 new homes on the coast
Orihuela City Council is preparing to auction off three valuable municipal plots on the Orihuela Costa, opening the door to the construction of 255 new homes in an area where residents have long warned that infrastructure, public services and basic facilities are already stretched to breaking point.
The sale, valued at an initial total of €21.6 million including VAT, has been presented by the council as a major opportunity to raise funds for long-awaited investment on the coast. Officials insist that every euro generated by the auction will be reinvested in Orihuela Costa, where demands for improved services have intensified in recent years amid rapid population growth, booming tourism and a continued surge in foreign property buyers.
But the announcement is likely to reignite a familiar debate: whether the answer to Orihuela Costa’s chronic lack of infrastructure is to sell off more public land for further residential development in an area already struggling to cope.
The three plots now being placed on the market are located in La Ciñuelica, La Cuerda and Peña del Águila. Together, they will allow for the construction of 255 homes, with developers invited to bid through an open public auction process published on the Public Sector Procurement Platform.
The plots are as follows: R-4 in PAU 20 La Ciñuelica, with a starting price of €4,154,931 and capacity for 66 homes; R-11 in the La Cuerda urbanisation, valued at €6,130,119 and allowing for 89 homes; and AUR-38 in PAU 21 Peña del Águila, priced at €11,332,560 and earmarked for 100 homes.
The council has stressed that the auction will be ascending, meaning the final amount raised could exceed the initial valuation. Interested companies will have 15 calendar days from publication to submit bids and must provide a deposit guarantee equivalent to 2% of the tender value excluding VAT.
According to the municipal valuation, the plots have been assessed in line with current market conditions, with Orihuela Costa described as an area shaped by three major attractions: the seafront, the reservoir and mountain landscape, and the influence of golf courses.
Plot R-4 in La Ciñuelica covers 7,253 square metres and is described as particularly flexible, allowing developers to alternate between detached and semi-detached housing depending on market demand. Its position is considered strategic, sitting between the main points of attraction and under the strong influence of the neighbouring Torrevieja property market.
Plot R-11 in La Cuerda extends over 15,861 square metres and is notable for its proximity to areas still awaiting development. Meanwhile, the AUR-38 plot in Peña del Águila covers 14,982.37 square metres and has been described as an exclusive enclave built around golf, attracting a high-end buyer profile and, according to the report, even public figures.
For the council, the sale represents a chance to convert municipal assets into funding for projects it says are urgently needed. The proceeds are expected to support strategic investment on the coast, including the renovation of the second health centre, the creation of new facilities and public equipment, improvements to water infrastructure and measures to secure sufficient water resources for the present and future population.
Announcing the decision, Councillor for Heritage Matías Ruiz said the council had chosen to act at a favourable time in the property market in order to obtain the greatest possible return from municipal land.
“Managing municipal assets also means taking advantage of opportunities when conditions are favourable, converting municipal land into infrastructure and services for residents,” he said.
Councillor for the Coast Manuel Mestre described the auction as “a very important decision for Orihuela Costa”, arguing that the move went beyond a simple financial transaction.
“We are talking about a political commitment, a government decision, and a way of understanding municipal management,” he said. “Orihuela Costa needs investment, it needs services, and it needs funding appropriate to its current situation.”
Mestre added that the coast has experienced years of population and tourism growth, which must be matched by new facilities, services and infrastructure. He also stated that around one-third of municipal investment is already being carried out in Orihuela Costa, a commitment he said would be reinforced by the funds raised from the auction.
Mayor Pepe Vegara defended the decision, saying it had been taken with “responsibility” and with a firm commitment to improving one of the municipality’s most important areas.
“Orihuela Costa is receiving very serious treatment from this government team,” he said. “We are taking this step because it needs fundamental investment to maintain and improve the quality of life of its residents.”
The mayor insisted that all proceeds from the land sale would remain on the coast.
“Every euro obtained from these plots will be reinvested in Orihuela Costa,” he said. “We are talking about essential projects to guarantee the development, maintenance of services and future of one of the great jewels of our municipality.”
Yet for many residents, the central question remains unresolved. Orihuela Costa has for years faced criticism over inadequate public services, limited civic infrastructure, pressure on roads, insufficient maintenance and a lack of facilities proportionate to its population. Against that backdrop, the prospect of hundreds of additional homes being approved through the sale of public land may be seen not only as a financial opportunity, but as another test of whether promises of investment will finally translate into visible improvements on the ground.
The council says the money will be used to strengthen the coast. Residents will now be watching closely to see whether this latest sell-off delivers the services Orihuela Costa has long been promised — or simply adds further pressure to an already overburdened coastline.
