Orihuela City Council has initiated the public auction process for three municipal plots located at various points along the coast. Through this operation, the local authority hopes to bring at least 21.6 million euro into the municipal coffers, with the intention of allocating the funds entirely to infrastructure investments on the Orihuela coastline.
Such land sales to raise funds have been carried out under multiple past administrations, including those of José Manuel Medina, Monserrate Guillén, and Emilio Bascuñana. Whilst these historical sales involved millions and were intended to benefit the local area, the money ultimately ended up going to other parts of the municipality. Local residents remain sceptical despite assurances from the current PP-Vox coalition that this time will be different. Given past events, coastal homeowners view the promises as a pipe dream, noting that two budgets have already been approved with pending investments. Critics suggest the funds are already available, but greater administrative efficiency is required to implement them. Furthermore, observers note the irony that while plots of land are available for sale, the municipality faces difficulties obtaining land for public facilities, such as school number 20, the permanent ecopark, and the second health centre.
The specific plots up for auction cover a total of 255 properties across just over 30,000 square metres. The first is the R4 plot of the PAU 20 La Ciñuelica, measuring 7,253 square metres, which has a starting price of 4,154,931 euro for 66 homes near the municipality of Torrevieja. The second is the R-11 plot of the La Cuerda urbanisation, located near areas pending development, measuring 15,861 square metres and valued at 6,130,119 euro for 89 homes. The third is the AUR-38 plot of the PAU 21 Peña del Águila, measuring 14,982 square metres, with a starting price of 11,332,560 euro for 100 highly exclusive homes around the golf course. The overall initial amount stands at 21,617,611 euro, though the executive believes this figure may increase as it is an upward auction.
This auction was previously included in the economic report supporting the 2024 budgets, though specific figures were omitted at the time as revenues depended on market value and the final price of the auction, which never took place. The process was delayed again last year, even though the 2025 economic report stated the auction was underway. The figures projected in the 2025 report were considerably lower than those announced yesterday, Monday 8th June, forecasting the construction of 248 homes and an additional revenue of €790,624, which is €20 million less than current expectations. Under that previous forecast, the La Ciñuelica plot was projected to bring in €138,735 for 65 homes, La Cuerda was expected to generate €246,329 for 89 homes, and Peña del Águila was estimated to contribute €405,559 for 94 homes.
The Comptroller’s Office previously pointed out that these calculations were based on unverified and unrealistic assumptions, pointing specifically to an inflated construction tax. The Comptroller called on the governing team to lower the revenue forecast of 7.7 million euro, compared to the 2.8 million euro that actually entered the coffers under this heading in 2024. This actual figure was significantly lower than the 8.8 million euro projected in the accounts for that year, but the reduction in expectations was still deemed insufficient by the Comptroller’s Office. The calculations factored in a modification of the tax to establish a rate of 797 euro per square metre, representing a 59% increase compared to the outdated rate of 500 euro, a change that is underway but not yet approved.
Additionally, the Comptroller’s Office indicated that the auction procedures had not yet been published and criticized the assumption that developers acquiring the licences would request the total number of licences permitted in each area. It was advised that budgeting revenues based on assumptions that are difficult to verify was unwise. By way of example, in 2020 the City Council placed three other coastal plots up for auction expecting to raise 21 million, which ultimately yielded just 683,000 euro.
The Councillor for Heritage, Matías Ruiz, whose department initiated the current process, explained that the City Council chose to promote the operation during a particularly favourable time for the real estate market. The goal is to obtain the maximum possible return on municipal assets and convert municipal land into infrastructure and services for residents. The contract will be awarded through an open procedure to the highest bidder. Interested companies have 15 calendar days to submit their bids and must provide a deposit of 2% of the bid value excluding VAT.
The Councillor for Coastal Affairs, Manuel Mestre, stressed that the resources obtained will be allocated entirely to the coastal region. He described the move as a political commitment and a government decision rather than a mere economic operation, stating that Orihuela Costa needs investments, services, and funding appropriate to its current reality. He noted that the coast has experienced significant population and tourism growth for years, which must be accompanied by new infrastructure and facilities. He emphasized that approximately one-third of municipal investments are already being implemented in Orihuela Costa, a trend that will be strengthened by the auction funds.
The Mayor of Orihuela, Pepe Vegara, assured that the decision is being made with responsibility and a firm commitment to continue improving one of the most important areas of the municipality. The mayor emphasized that a significant portion of the funds raised will be allocated to water infrastructure to guarantee the necessary water supply for the present and future of the coast. Funds will also advance strategic projects such as the renovation of the second health centre and the development of new facilities. The mayor stated that every euro spent on these plots will return to Orihuela Costa in the form of investment to ensure the development and maintenance of services.
