La Hoya Development - Residential Construction Delays

[Carl]

Appears that residential construction on the development ceased when Phase 1 (TM properties) was completed back in August 2025, with Phase 2 yet to start due to what appears to be difference of opinions.

https://www.informacion.es/vega-baja/20 ... 79690.html

Google translate, minus photo and videos in article:

The delay in the urbanization of the La Hoya macro-project in Torrevieja leaves the construction of 775 subsidized apartments under the Vive Plan up in the air

The City Council is demanding that the joint venture formed by Corpic and TM unblock the second phase of urbanization because the public development awarded eight months ago is unfeasible without the urbanized land.

The developer of Sector 20 La Hoya in Torrevieja, one of the largest residential areas under construction in Spain, covering 1.8 million square meters with 7,400 homes and another 100,000 square meters of commercial space, completed the first of four phases of this macro-project in August 2025. Around 45% of this area, some 825,000 square meters, was officially handed over last October, and the second phase, which includes municipal plots, could have begun since then. The City Council is the developer for the construction of more than 775 public housing units under the Generalitat's Plan Vive program.

However, the laying of roads and the provision of essential services - lighting, sanitation, green areas, rainwater, signage or water supply - so that these lands have the status of urban plots, have not yet begun.

Request

The Urban Planning Department, headed by Mayor Eduardo Dolón (PP), has formally requested that the joint venture (UTE), comprised mainly of Corpic (Urmosa) and Grupo TM, along with a third partner holding approximately 15% of the stake, comply with its legal obligations. The joint venture has responded, and the municipality must now address this response, as confirmed by INFORMACIÓN with sources within the governing team.

Time is running out. In July 2025, the regional government and the Torrevieja City Council presented the awarding of the Vive Plan in Torrevieja as a successful process. This plan, the largest in the region in terms of the number of homes, corresponds to the transfer of land for this purpose within one of Spain's most extensive urban development plans. The homes will be built using a land-for-construction model: companies "pay" for the public land they will use in exchange for transferring ownership of a portion of the homes to the City Council. The bidding process was resolved relatively quickly, considering its administrative complexity. Furthermore, an amendment to the partial plan is being finalized, legally validating an additional story for the publicly subsidized buildings.

But construction of the residential buildings cannot legally begin unless the urbanization of this second phase — which covers another 641,981 square meters—starts on-site in parallel. The deadline is April, by which time the contracting companies Abala (Hozono Global Group) and the Basque company Livanto should have the licenses they have already begun to process.

Green Areas

The joint venture justifies its refusal to begin work on the grounds that the City Council has not assumed responsibility for the maintenance of the green areas in the first phase, even though Torrevieja has had a new parks and gardens service since 2025. Sources consulted by this newspaper indicate, however, that there are some disagreements among the joint venture partners that prevent a consensus on how to approach the second phase. The development of this new phase, in addition to the subsequent third and fourth phases — which are smaller — is a legal obligation of the joint venture.

The developer invested over €30 million (including VAT) in the first phase, now completed, from which numerous plots of land for commercial and residential use have been sold. Corpic alone is marketing the 100,000 square meters of commercial space next to the CV-905 highway, in addition to residential plots. Among the licenses already granted by the City Council are those requested by land buyers such as Bauhaus and Consum. TM, for its part, with a different strategy in which it manages its own land, has developed several phases of its projects with approximately 300 homes, as well as constructing its headquarters and a commercial area.

The investment needed to address the second phase is estimated at around 12 million euros (VAT included).

[Bee]

I think I need to lie down after reading that. There are so many companies involved that my brain is spinning like a top. Who is at fault after all that
All I do know is that TM and Urmosa are A1 as far as any of their developments in Torrevieja are concerned.

Bee

[Carl]

I think I need to lie down after reading that. There are so many companies involved that my brain is spinning like a top. Who is at fault after all that
All I do know is that TM and Urmosa are A1 as far as any of their developments in Torrevieja are concerned.

Bee

Too many companies might be the root cause of the problems, but you would hope by this advance stage of the development they would have worked out who has to do what to who and when.

It is a somewhat confusing arrangement in so far as Torrevieja Council are the developer for Phase 2 but also the customer. The Council being at both ends of this phase, plus also being the local planning authority for overseeing the La Hoya development it seems the only role they are not performing is getting their hands dirty and physically building the properties.

What was not clear to me from the article was what the April deadline is about ? Expiry of planning permission for Phase 2 ?

Also noted in the article that they are adding another floor to the subsidised housing. Wonder if that will have any affect on private properties already sold or being sold off-plan ?