Plans to build 811 affordable apartments in Torrevieja under the Vive Plan are hanging in the balance. The project is facing significant delays due to the Generalitat blocking an upward update to the dynamic module, which dictates the maximum sale or rental price per square metre of usable space for protected housing. This issue is compounded by a sharp rise in raw material costs driven by the United States-Iran war. Although the initiatives were definitively awarded more than eight months ago, construction has yet to begin.
The issue extends beyond the planned developments in Torrevieja to other unstarted Vive Plan projects in municipalities across the province of Alicante, as confirmed by sources at the Association of Real Estate Developers of the Province (Provia). The price is currently frozen at 2,400 euro per square metre. However, the sector indicates that for construction to remain profitable for developers, the final price of the homes needs to increase by an average of 15,000 euro to 30,000 euro compared to current rates.
In Torrevieja, three of the four definitively awarded lots from October 2025 are situated in Sector 20 La Hoya. Whilst the municipality and the joint venture are working to resolve delays regarding the start of the second phase—negotiations which have been ongoing since last summer—approval has not yet been granted. Under local regulations, social housing units can only obtain a municipal building permit if the urbanisation of basic services, including roads, lighting, sanitation, sidewalks, and stormwater drainage, is carried out at least simultaneously with the apartment construction.
The Torrevieja City Council and the Valencian Regional Government (Generalitat) originally promoted the Vive Plan as one of the most important projects in the Valencian Community due to the land area and number of homes involved. Torrevieja was set to be the first municipality to launch the initiative, making land available to the Generalitat in mid-2024. The provisional award was made in July last year, followed by the final award in October 2025. At the time, the Regional Minister for Housing, Susana Camarero, stated the award would provide a major boost to Torrevieja and help resolve housing access issues for hundreds of families.
Provía sources revealed they have been requesting the Generalitat to update the dynamic module since the start of 2026, but have received no response, despite these updates usually occurring at the start of each year. The controversy surrounding the allocation of the Les Naus housing development may have influenced the Consell’s failure to resolve the request, as an update would increase the final prices of subsidised housing.
This freeze coincides with the US-Iran trade war crisis, which has blocked the Strait of Hormuz and impacted global oil supplies. Rising fuel prices have led to a 17% increase in the cost of concrete, alongside price hikes for basic materials from the ceramics industry. Furthermore, modern public housing must now meet European Union design, sustainability, and carbon footprint reduction standards, such as installing air-source heat pumps. These requirements elevate them to the quality of open-market housing but require either a higher price threshold or lowered standards to remain viable.
Jesualdo Ros, technical secretary of Provia, stated that current context places maximum delivery prices “practically at a loss”. Ros expressed hope that the Generalitat would respond swiftly to protect the interests of middle-income families while ensuring a reasonable profit margin for developers.
The Torrevieja homes are allocated across municipally owned plots. In the La Hoya sector, 775 apartments are planned across three lots: Lot 1 (plot R-17) was awarded to Abala Infraestructuras SL (Hozono Global Group) for 220 homes; Lot 2 (plot P-27) went to Livanto Promociones SL for 195 homes; and Lot 3 (plot R-31) was also awarded to Livanto Promociones SL for 360 homes. A fourth lot for 36 homes in the La Manguilla sector, near La Mata beach, was awarded to Construcciones Udercón, SA. Whilst the La Mata plot is already urbanised, construction has not yet commenced.
