In the present work, the case of the Carmenes del Mar resort (Granada, Spain) is shown. It can be considered one of the most extreme examples on the Mediterranean coast of severe pathologies associated with urban development on coastal landslides. The resort, with 416 dwellings, was partially built on a deep-seated landslide which affects a soft formation composed of dark graphite schists. In November 2015, the City Council officially declared a state of emergency in the resort and 24 dwellings have already been evacuated. We have used two remote sensing techniques to monitor the landslide with the aim of identifying and measuring a wide range of displacements rates (from mm/year to m/year): (1) PSInSAR, exploiting 25 ENVISAT SAR images acquired from May 2003 to December 2009, and (2) photogrammetry, considering the output from two Unmanned Aerial Vehicle (UAV) flights made in June 2015 and January 2016 and the outdated photos from a conventional flight in 2008. The relationship between the geology of the site, data from PS deformation measurements, building displacements, rainfall and damage observed and their temporal occurrence allows a better understanding of the landslide kinematics and both the spatial and temporal evolution of the instability. Results indicate building displacements of up to 1.92 m in 8 years, a clear lithological control in the spatial distribution of damage and a close relationship between the most damaging events and water recharge episodes (rainy events and leaks from swimming pools and the water supply network). This work emphasises the need to incorporate geohazards into urban planning, including policies to predict, prepare for and prevent this type of phenomenon.