353 luxury homes to rise on abandoned Torremolinos seafront site in €250m project

A major €250 million housing development is set to transform one of Torremolinos’ most prominent abandoned coastal plots, with 353 luxury homes planned near La Carihuela.

The project, known as Magna, is being promoted by Seville-based developer giant Grupo ABU and will be built on Avenida Carlota Alessandri, close to the seafront and near Benalmadena’s Puerto Marina.

The land was once home to the former Melia Tres Carabelas hotel, which was demolished years ago. Since then, the site has remained vacant for more than a decade after an earlier hotel scheme collapsed during the financial crisis.

The unused space known as the ‘Melia hole’ will now be one of the coasts biggest residential developments

Now, the long-unused plot known as the ‘Melia hole’ is set for a new future as one of the coasts biggest residential developments. The project will cover a 12,688-square-metre site with around 40,000 square metres of buildable space. Plans include 353 high-end homes spread across several mid-rise buildings rather than a single tower block.

Developers report the design aims to blend into the surrounding area while offering modern Mediterranean-style living. Communal facilities will include pristine landscaped gardens, luxury swimming pools and leisure areas for residents.

The scheme became possible after Torremolinos City Council approved a planning change allowing the land to move from hotel-only use to residential development. Administrative procedures are now in their final stages, while the building licence process has also begun.

Demand for luxury homes remains strong across the province

Torremolinos town hall will receive financial compensation equal to 15 per cent of the revenue generated by the development, above the legal minimum requirement.

Early sales have already started, with prices reported at around €6,000 per square metre. The project is expected to attract mainly Spanish domestic buyers, rather than relying heavily on foreign investors. The development comes as demand remains strong, with the Costa del Sol continuing to attract buyers seeking premium homes in sought-after coastal locations.