Named Tierra Viva, the development will consist of 53 two-storey villas on a hillside in the town of Behanavís near Marbella.
Announced as the car brand's first residential project in Europe, the villas were designed to reflect the ethos of the sports car brand.
"[The] design is directly inspired by the brand's supercars, with interiors enriched by sophisticated finishes inspired by the Lamborghini style," said the brand.
Created by developer Dar Global, each of the villas, which will have either four, five and six bedrooms, will have two floors of accommodation placed above a basement or garage.
They will all have a pair of swimming pools with views of the Mediterranean, along with multiple terraces. The villas will have floor-to-ceiling glazing and be finished with marble floors.
"Like precious stones the 53 exclusive villas at Tierra Viva rise gently from the land," said Dar Global.
"They are carefully constructed at different levels on the hills to ensure every villa enjoys endless panoramas of the Mediterranean Sea."
The development is the latest in a succession of residential properties being created by luxury car brands.
"This partnership represents the merging of Lamborghini's luxury supercar essence and Dar Global's expertise in real estate," said Lamborghini CEO Stephan Winkelmann.
"Tierra Viva embodies the essence and power of Lamborghini and its unrestricted nature, interpreted into an architectural masterpiece."
Last month Bugatti unveiled its first residential development in Dubai, while Bentley is designing a skyscraper in Miami and Aston Martin has created a Galleries and Lairs service to develop car-centric homes.