July 17, 2026

A&G drives forward the development of 125 affordable rental homes in Estepona (Málaga)

Alternative Investments

With a total investment of €43 million, the project is mobilising private capital and funds from the National Recovery and Resilience Plan (NRRP), addressing the housing shortage in the province of Málaga.

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.”

April 30, 2026

A&G and Gestilar are driving the development of 288 affordable rental homes in Los Ahijones

Alternative Investments

The project, with an investment of around 70 million euros, draws on private capital and European public funds from the Recovery and Resilience Facility (RRF Spain) to address the housing shortage

A&G Global Investors and Gestilar will jointly drive the development of 288 affordable rental homes in Los Ahijones (Vicálvaro), one of the main urban developments in the south-east of the capital. This is a high-profile partnership in which A&G will be responsible for channelling public and private institutional capital, whilst the property company will lead the promotion and development of the project.

The project, representing an investment of around €70 million, will be supported by the A&G Real Estate Sustainable Developments SICC S.A., whose funds come from the Regional Resilience Fund (FRA), allocated by the European Investment Bank (EIB) in July 2025 under the Recovery and Resilience Facility (RRF Spain). With regard to private capital, this will be channelled through various investment vehicles managed by A&G.

The combination of both vehicles enables A&G to simultaneously mobilise public and qualified private capital under a single investment thesis, maximising risk-adjusted returns and meeting the proposed social impact objectives.

The project: 288 affordable rental homes in the new Madrid

Gestilar, with a long-standing relationship with institutional investors -including Morgan Stanley, DWS and Aviva Investors- and one of the most dynamic players in the Build-to-Rent segment in Spain, will be responsible for developing this project on a plot with a buildable area of 24,065 square metres, acquired from the sector’s Compensation Board. 

The development will comprise 288 VPPL homes for affordable rent, each with a storage room and a parking space, covering a total floor area of approximately 35,000 square metres. Completion is scheduled for the first half of 2029.

The development will be located in Phase 1 of Los Ahijones, an area where more than 18,000 new homes are planned, with over 50% earmarked for social housing. Situated 10 kilometres from the centre of Madrid, the project will have direct access to the M-45 and M-50 motorways and will be close to the future extension of Metro Line 9.

The partners and the strategy: public capital, private capital and a leading developer

According to Jaime Trigo, Managing Director at A&G Global Investors, “this project enables us to continue meeting our objectives regarding the development of sustainable, affordable housing solutions in areas with significant structural imbalances, thereby generating a greater impact. It is very important for us to be able to commit, from a single platform, both the management of public funds and the necessary private capital co-investment, all thanks to the various management mandates currently held by A&G” he adds. 

For his part, Javier García-Valcárcel, chairman of Gestilar, states that “this operation highlights the importance of collaboration between public authorities, developers and institutional capital to provide an effective response to the shortage of affordable housing.” He also highlights Gestilar’s experience in this type of initiative, “we have a long track record in the development of complex residential projects and in the comprehensive management of the entire value chain, which enables us to undertake projects of this scale with confidence.” He also points out that “our ability to deliver, combined with strong financial and operational stability, is key to meeting the deadlines and quality standards required for this type of development.”

From structural imbalance to opportunity: affordable housing as an institutional asset

This initiative comes against a backdrop of significant strain in the housing market. Spain faces a structural shortage of affordable housing, estimated by the Bank of Spain at around 220,000 homes, whilst new housing construction falls short of half that figure. According to the same source, over the last four years, this imbalance has generated a cumulative shortfall of over 600,000 homes, with a particular impact on large urban areas such as Madrid.

In this context, the Los Ahijones project represents an example of public-private partnership aimed at increasing the supply of affordable housing in areas of high demand.

The operation fully meets the criteria set by the European Investment Bank, standing out for its significant multiplier effect: thanks to the public-private co-investment structure combined with various sources of funding, for every euro of public funds committed, more than 4.5 additional euros of investment are mobilised. This demonstrates the model’s ability to maximise resources and reinforce the real impact of European funds on the housing market.