Orihuela City Council is set to receive more than €23.1 million from the sale of three municipally owned residential plots on Orihuela Costa—around €1.5 million more than originally expected.
The plots, located in La Ciñuelica, La Cuerda and the Colinas Golf development, cover a combined area of just over 38,000 square metres and have capacity for 255 homes.
Despite doubts within parts of the property sector about whether the auction would attract sufficient interest, seven companies submitted eight offers for the three sites. Strong demand for developable residential land on the coast pushed the proposed sale price 7.14% above the combined starting figure.
The council initially valued the three plots at €21,617,611, including VAT. The proposed awards total €23,161,915—an increase of €1,544,304.
However, the sales have not yet been formally completed. The award proposal remains subject to possible appeals and final confirmation from the successful bidders, which were required to provide guarantees before participating. The companies’ names have not yet been disclosed.
La Cuerda attracts largest increase
The biggest increase was recorded for plot R-11 in La Cuerda, close to La Regia in the southern part of Orihuela Costa.
The 15,861-square-metre site, which has capacity for 89 homes, had a starting price of €6,130,119. The proposed award is €6,979,280—an increase of €849,161, or 13.85%.
Plot R-4 in the PAU-20 La Ciñuelica development, close to the boundary with Torrevieja, also attracted strong interest. Its value increased from €4,154,931 to €4,699,433, a rise of €544,502 or 13.1%.
The La Ciñuelica plot covers 7,253 square metres and can accommodate 66 homes.
The smallest increase was recorded for the AUR-38 plot in Peña del Águila, within the PAU-21 Colinas Golf development. Its price rose from €11,332,560 to €11,483,202—an increase of €150,642, or 1.33%.
Despite attracting only one offer, the 14,982-square-metre Colinas Golf plot accounts for almost half of the total income generated by the operation. It has capacity for 100 higher-end homes in the luxury golf resort.
Three bids were submitted for La Ciñuelica, four for La Cuerda and one for the Colinas Golf site.
Environmentally sensitive location
The Peña del Águila plot is situated in a particularly sensitive area close to Sierra Escalona, which has long been proposed for designation as a natural park.
The development containing the site was approved around 20 years ago and includes approximately 400 hectares of former forest and agricultural land that was reclassified for urban development.
Its location, surrounded by pine forest and next to a golf course, has helped make it the most valuable of the three plots. The Colinas Golf sale alone will provide the council with approximately €11.5 million.
Heritage Councillor Matías Ruiz said the council had chosen to proceed with the sale at what it considered an especially favourable moment for the property market.
He said the objective was to secure the best possible return from municipal assets and convert the value of the land into infrastructure and services for residents.
The PP-Vox coalition government has promised that most of the proceeds will be invested in Orihuela Costa. One of the main planned projects is an improvement to the coastal water-supply network, including new storage tanks and pipelines to provide emergency reserves during breakdowns or periods of exceptionally high demand.
Orihuela Costa has around 30,000 registered residents, but its population increases dramatically during the summer.
Previous promises raise concerns
Similar municipal land sales have been carried out under several previous administrations, including those led by José Manuel Medina, Monserrate Guillén and Emilio Bascuñana.
On those occasions, the proceeds were also expected to benefit Orihuela Costa. However, critics say much of the money was ultimately invested elsewhere in the municipality.
That history is likely to fuel demands for clear guarantees that the €23.1 million raised through the latest operation will genuinely be spent on coastal infrastructure.
The sale also comes at a time when Orihuela Costa faces a shortage of affordable housing, overcrowded schools and a lack of land for essential public services.
Residential plots cannot be used for public facilities
The council has stressed that the three sites are residential plots and are not land reserved for schools, community centres, roads, parking or other public facilities.
When development plans are approved, developers are normally required to transfer two types of land to the municipality. One category is set aside for public infrastructure and facilities. The other represents the council’s share of profitable development rights and remains designated for residential construction.
The plots being sold belong to the second category. Therefore, they could not legally be used for projects such as schools, eco-parks or community centres without changes to their planning classification.
Nevertheless, the sale has renewed questions about how Orihuela has managed its public land over recent decades.
It took the council more than two years to identify and prepare a site for Orihuela Costa’s twentieth school, which currently operates from temporary classrooms. The coastal area also still lacks suitable municipal land for a permanent eco-park.
The €23.1 million sale therefore represents a substantial financial opportunity for Orihuela—but residents will be watching closely to ensure that the proceeds finally deliver the infrastructure and services the coast has long been promised.
