Initial reports are that the explosion could have been caused by a gas leak in the Granada province, which is popular with tourists.
Neighbours were alerted to the explosion following a loud bang and a pillar of smoke.
Up to ten people have been injured, one of whom very seriously.
A 52-year-old woman who was inside the building at the time of the explosion is in a critical state in a hospital in Granada.
A child who was cycling in front of the building is one of the people who has been hurt.
The explosion was caused from a gas leak
Roads were cordoned off after the explosion
Neighbours were alerted to the explosion following a loud bang and a pillar of smoke
The explosion happened on Monday afternoon and the emergency services were called to the scene.