Marbella is preparing for a significant expansion of its urban landscape as a large-scale development project in the eastern part of the city moves forward, paving the way for nearly 2,800 new homes alongside a five-star luxury hotel.
The planned development is located in the area between Alicate and Arroyo Sequillo Este, north of the A-7 motorway, and spans more than 1.4 million square metres. It represents one of the most ambitious residential and tourism-linked projects currently progressing in the Costa del Sol.
Thousands of new homes planned
The scheme includes a total of approximately 2,759 residential units, offering a mix of housing types designed to cater to different market segments. Plans include detached villas in more spacious northern sections of the development, as well as apartment complexes closer to main access roads and transport connections.
The project aims to respond to continued demand for housing in Marbella, where limited land availability in prime coastal zones has placed increasing pressure on developers to expand inland.
Luxury hotel to boost tourism offering
Alongside the residential component, the development will feature a five-star “Gran Lujo” hotel, reinforcing Marbella’s position as one of Europe’s leading luxury tourism destinations.
The hotel is expected to occupy a substantial area within the masterplan and will form part of a wider strategy to integrate high-end hospitality with residential living. Additional commercial and leisure spaces are also included, providing services and amenities for both residents and visitors.
A major investment in Marbella’s future
The project is being developed by Golf Reserva de Marbella S.A., part of the Peñarroya Group, a long-established name in property and tourism development on the Costa del Sol.
It forms part of a wider trend of large urban developments across Marbella and surrounding municipalities, where sustained international demand continues to drive new residential and hospitality investment.
Marbella remains one of Spain’s strongest property markets, particularly in the luxury segment, attracting buyers from across Europe and beyond who are drawn to its climate, lifestyle, golf courses and established reputation as a premium coastal destination.
Long-term transformation of the area
Although the project has taken an important step forward, full completion will take place over several years. Extensive infrastructure work, road networks and public services will need to be completed before full-scale construction of housing and hotel facilities can progress.
Once finished, the development is expected to significantly reshape the eastern district of Marbella, adding thousands of new homes and reinforcing the city’s role as a major hub for high-end residential living and international tourism investment on the Costa del Sol.