100 Families Face Eviction Uncertainty at Long-Abandoned Costa Teguise Development

Costa Teguise is once again at the centre of attention as around 100 families living inside a long-abandoned development on the resort’s Avenida de Las Palmeras and Avenida del Mar face fresh uncertainty over their future. The unfinished site, known as Club del Rey and located on plot 214, has been part of the Costa Teguise landscape for more than two decades. What began as a stalled tourist accommodation project has, over the years, become a makeshift home for families who say they have struggled to find affordable accommodation in Lanzarote. No eviction has taken place as a result of the latest development, but the situation has moved into the spotlight again after the company that owns the site, Toscolanz SL, contacted a private de-occupation/eviction company to assess how many people are currently living there. According to reports published on 1 October 2026, representatives visited the property during Wednesday afternoon and returned later in the evening because a number of residents had been at work during the first visit. There were no reports of violence and the visit did not itself constitute an eviction.

Why has the Costa Teguise development been unfinished for so long?

The story of plot 214 goes back to the late 1990s. A licence was granted in 1999 for a development of 157 tourist apartments. A subsequent court case resulted in the licence being annulled, with the Tribunal Superior de Justicia de Canarias ruling in 2005 that the development could not continue under that licence. The court proceedings centred on planning and administrative requirements, including the compatibility of the licence with Lanzarote’s island planning framework. The construction was left incomplete, creating one of the most recognisable abandoned concrete structures in Costa Teguise. Teguise Council later pursued the demolition of the unfinished buildings. In 2022, the council announced that it would move ahead with preparing a demolition project after efforts to have the property owners undertake the work themselves had not produced a resolution.

How did families come to live there?

As Lanzarote’s housing costs increased, the unfinished apartments gradually became occupied. Reports earlier in 2026 described around 90 families living on the site, while the latest reports put the number at approximately 100 families. The exact number can change as people move in or out, which is why the latest figure should be treated as an estimate rather than a confirmed census. Some residents have adapted parts of the unfinished buildings into homes, adding doors, windows, fencing, water storage, solar equipment and other basic facilities. Local reporting has also highlighted the presence of children and working residents among those living there. The situation has become closely linked to the wider Lanzarote housing crisis. Finding long-term, reasonably priced accommodation has become increasingly difficult for many residents and workers, particularly in popular tourist areas such as Costa Teguise, Playa Blanca and Puerto del Carmen.

What is planned for the site?

The current owner, Toscolanz SL, has plans for a new tourism development on plot 214. The proposed Body, Mind & Health Hotel has previously been described as a four-star hotel complex with luxury villas. Reports in 2024 stated that the project had been authorised for 170 accommodation units and 407 tourist places by the Cabildo de Lanzarote. The proposed development is one reason the future of the unfinished site has remained an important issue. However, the latest reports do not mean that the new hotel is about to open or that residents have already been removed. The immediate issue is the ongoing legal and practical process concerning occupation of the privately owned site.

What happens next?

For residents, the key question is whether alternative accommodation can be found for people who may have nowhere else to go. Teguise Council has previously involved its Social Services department in the situation, while residents and the council have also worked on cleaning and improving conditions around the site. For Costa Teguise, the story highlights a difficult contrast. The resort is one of Lanzarote’s major tourist destinations, with hotels, apartments, restaurants and beaches attracting visitors throughout the year, yet an unfinished development in the middle of the resort has become a symbol of the island’s shortage of affordable housing. For tourists visiting Costa Teguise, there is no indication that the situation affects the normal operation of the resort or its beaches, restaurants, hotels and tourist attractions. The issue concerns a specific privately owned development and the people living within it.

The bigger Lanzarote housing picture

The situation at Club del Rey is part of a much wider conversation about housing in Lanzarote. The island needs accommodation for the people who live and work here, while tourism remains a major part of the local economy. As visitor numbers and demand for accommodation remain significant, pressure on the residential housing market has become an increasingly visible local issue. The future of plot 214 will therefore be watched closely by both residents and the tourism industry. Whether the long-abandoned buildings are eventually demolished and replaced, and what happens to the families currently living there, remains to be resolved through the relevant legal and administrative processes. For now, the important point is that around 100 families are facing uncertainty — but there has been no mass eviction from the Costa Teguise site as of 1 October 2026.

100 Families Face Eviction Uncertainty at Long-Abandoned Costa Teguise Development