
Court Ruling Marks the End of the Resort Saga on the Island
A years-long legal battle over the large-scale tourist complex Isla de Valdecañas in Extremadura has ended in Spain. The country’s Constitutional Court unanimously rejected the last of three filed lawsuits, thereby confirming the decision for the complete demolition of the site. This latest suit was initiated by the municipalities of El Gordo and Berrocalejo, on whose territory the artificial island of more than 130 hectares is located.
Previously, similar complaints had been filed by regional authorities and homeowners’ associations, but all were dismissed. Judges found no grounds to overturn the Supreme Court’s ruling, which as early as 2022 had deemed the construction illegal and ordered the land be returned to its original state.
How the Dispute Over Luxury Real Estate Unfolded
The story of this project began in the mid-2000s, when villas, a hotel, golf courses, and a yacht club sprang up along the shores of the Valdecañas reservoir. The complex quickly gained popularity among Spain’s elite: renowned politicians, businessmen, and artists bought homes here. The average price of a villa exceeded half a million euros, with houses reaching up to 270 square meters in size.
However, from the very beginning, the project faced protests from environmentalists, who pointed to violations of environmental protection laws. In 2011, the regional court declared the construction permit invalid, and three years later, the Supreme Court upheld this decision. In 2021, an order was issued to demolish all unfinished structures, while allowing existing buildings to remain temporarily. Yet, after another appeal, the Supreme Court insisted on their complete dismantling.
Impact on the region and those involved in the conflict
The legal proceedings were marked by accusations of violations of the right to defense, delays in the process, and judicial overreach. Municipalities and property owners tried to contest the rulings, citing economic losses and damage to local budgets. However, the Constitutional Court found no grounds to satisfy their claims.
Now the region faces the challenge of carrying out a complex demolition process, while investors must come to terms with their losses. The future of this area remains uncertain: some fear an economic downturn, while others hope for the restoration of the natural balance. One thing is clear—the era of luxury tourism on Isla de Valdecañas has come to an end.












