THE mayor of Estepona, Jose Maria Garcia Urbano, has secured a licence to build 20 tourist apartments in Malaga, just days after the city announced plans to pause approvals for new holiday lets.
The project, La Corrala de Capuchinos, involves a €1.3 million investment in a new tourist accommodation complex in central Malaga, near Plaza de Capuchinos.
One of Garcia Urbano’s companies is behind the project.
Established in 2003, it was run by his wife until 2019, when the mayor took over management.
READ MORE: Estepona mayor back in court this week to fight five-year prison demand as corruption cases mount
The development will include 20 tourist apartments, a rooftop pool and underground parking, with completion expected in around 18 months.
The licence was granted on May 8 after being submitted in May 2024, and will now be reviewed by the city’s Urban Planning Board.
Approval for the project comes at a politically sensitive moment.
At the end of May, Malaga mayor Francisco de la Torre announced a one-year suspension on new tourist rental licences amid growing housing pressure in the city.
However, he did not confirm when the freeze would come into place.
“We will do everything possible, quickly and with legal certainty,” the mayor said, “to establish the ban as soon as possible.”
The freeze has yet to receive final approval, creating a window that has allowed Garcia Urbano’s project to move forward.
The People’s Party (PP) mayor has been slammed by critics accusing him of fuelling property speculation in the middle of a housing crisis.
Malaga city councillor, Toni Morillas, said: “The PP and its public representatives are synonymous with speculation.”
She described the granting of the license in the context of a ‘housing emergency’ in the city as ‘infamous and indecent’.
The approval of GarcIa Urbano’s foray into the tourism industry comes amidst intense controversy surrounding tourist apartments in Malaga.
The timing is particularly sensitive, coming just weeks before a June 27 protest organised by Malaga para Vivir (Malaga to live), which is campaigning against rising rents, gentrification and the city’s growing focus on tourism at the expense of local residents.
The development arrives at a particularly delicate moment for Garcia Urbano, as he battles a raft of corruption allegations and ongoing legal proceedings.
Prosecutors are demanding a five-year prison sentence and a ten-year ban from public office for the mayor who is accused of embezzlement and influence peddling.
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