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San Sebastián Buys Loyola Barracks for €73 Million to Build 1,700 Public Homes

The deal sets a four-year deadline for army units to vacate the 17.5-hectare site ahead of neighborhood redevelopment.

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La fachada del cuartel de Loyola en San Sebastián (Guipúzcoa)

Overview

  • The Ministry of Defense and Invied signed the sale contract on July 23, fulfilling a 2020 budget pact between Pedro Sánchez’s government and the PNV.
  • San Sebastián plans to convert the 17.5-hectare former military site along the Urumea River into a new district with 1,700 VPO (viviendas de protección oficial).
  • The contract grants the military four years to relocate most units to Vitoria-Gasteiz’s Araca base while retaining a battalion on city-ceded land.
  • A July 7 Supreme Court ruling annulled the Basque High Court’s heritage protection order, enabling redevelopment while preserving the main facades.
  • City planners led by Nekane Arzallus will immediately begin designing infrastructure, public spaces and services for the forthcoming neighborhood.