The 27-year-old will officially join the La Liga side at the end of the season when his contract with his current club comes to an end.
A number of European clubs had been linked with the defender's services, but he has penned a pre-contract agreement with Granada until June 2018.
"They're a historic club in Spanish football, who also play good football and have great supporters. This could be a great step in my career," Babin told reporters at a press conference.
Babin has made 20 league appearances for Alcorcon this season.