Saudi Royal Family to pay Marbella €30m for palace expansion

Marbella’s council has approved a land reparcelling project allowing the Saudi royal family to expand their palatial compound on the luxurious Golden Mile, in exchange for a hefty payment to the local council.

What does the deal involve?

Casa Al Riyadh S.L., the company that owns the royal estate, will hand over a whopping €30 million to the town hall. This covers the 10% urban development levy owed for increased buildability, plus land earmarked for general infrastructure systems. Rather than ceding plots or building social housing, the firm opted to pay €24,477,536 for development rights and €6,264,462 for roughly 6,000 square metres of general systems land.

Growing family and a growing footprint

Two plots belonging to the Saudi royals span more than 725,000 square metres and already house numerous mansions, a dozen palaces and a mosque. According to the reparcelling project, “the natural growth of members of the Saudi Royal Family has generated the need to expand current palace residences and ensure conditions of privacy and security.” A new subzone called “Palacio Real” has been created, permitting construction across 20% of a 189,783 square metre area. The estate owner first requested the change back in 2017, but it took until September 2024 for Andalucia’s regional government to give final approval.

Council eyeing up old debts

Urban planning councillor Jose Eduardo Díaz noted that the council owes money to the estate. The debt dates back to the 1990s, when controversial mayor Jesus Gil failed to pay landowners for roads built on their property. Once that debt is offset against the €30 million payment, he estimates only between a third and half of the total will actually reach council coffers.

Mayor welcomes the move

Mayor Angeles Muñoz explained to El Periodico de Marbella that she felt that the news was encouraging , saying it confirms the family’s third generation still wants ties to Marbella. She said incoming funds would go towards local investments, though specific projects have not yet been named.