Alicante closed the year 2023 with record data in the construction industry. The number of houses built in the province last year was 8,783, the highest figure since 2007. These data exceeded the previous maximum figure of 17%, or 7,532 dwellings, recorded in 2018. Compared to 2022, the increase was 52% and there were 5,768 houses approved. In addition to La Vega Baja, Marina Alta and Marina Baixa were the areas with the most activity, while at the city level, Orihuela and Alicante topped the rankings, exceeding a thousand homes.
“The figures for 2023 are based above all on the extraordinary second quarter, when construction started on 3,001 homes. This figure exceeds the total number of homes built each year from 2009 to 2014 in a single quarter; this is a milestone that is difficult to repeat,” commented Carlos Casas, president of the Technical College of Architecture in Alicante.
In the third and fourth quarters of last year, activity maintained a significant but declining growth rate compared to the previous year.. Comparing the same periods of 2023 and 2022, the number of houses increased by 99 percent in the second quarter, 48 percent in the third quarter and 13 percent in the fourth quarter compared to the second quarter of 2022. From 1,651 residences in 2022 to 1,870 in 2023.
“Data for the fourth quarter, although higher than 18 of the last 28 quarters, raises this possibility. The forecast that the growth we stated in the previous quarter will be exhausted“As we said, it would be a positive scenario for the sector if activity this year remains at the levels of the third and fourth quarters of 2023,” R. said.
La Vega Baja strengthens its leadership
The distribution of activity among different regions of the state reinforces the priority of Vega Baja, which increased from 38.7% of the total in 2022 to 43.6% in 2023. Only Marina Alta and Marina Baixa are comparable to Vega Baja in terms of dynamism Increasing from 24.8% to 26.5% of the total in 2023. The percentage of the remaining areas decreases so that the Alicante region increases from 22.1% to 20.1%, the Elche region increases from 8% to 6.5% and its share of activity, especially in the interior, goes from 6.5% to only 3% It dropped to .4.
“These growth rates have enabled activities in Vega Baja, Marina Alta, Marina Baixa and the Alicante region to reach maximum levels since 2008. This makes it difficult to exceed this year’s figures in these regions in an economic context that is expected to be less favorable. “In fact, these areas account for 90% of the activity,” commented COATA president Carlos Casas.
La Vega Baja on the one hand, and Marina Alta and Marina Baixa on the other, increased housing starts by 71% and 62% respectively; Alicante and Elche show significant growth compared to 2022, but this growth is less than in the previous two regions. The growth of the Alicante region is 38%, that of Elche is 24%. However, the interior behaves differently than the rest of the province, with a 20% decrease.
Vega Baja’s fourth-quarter data represents the first decline in the last five quartersand there is a pause in the significant growth it has experienced since the second quarter of 2021. 589 homes in 2023 compared to 653 homes in the fourth quarter of 2022, representing a 10% decrease. Alicante region finished the year with a significant recovery in activity176% from the previous quarter and 39% from the fourth quarter of 2022. Alicante recorded four quarters of growth, reaching its highest level since 2008.
Activity at Marina Alta and Marina Baixa also reached its highest level since 2008, with six consecutive quarters of growth. These areas increased by 18% in the last quarter and 32% in the fourth quarter of 2022.
Contrast to the dynamism of the three main activity areas of the province is presented in the Elche region and the interior.. Construction of 87 houses started in the Elche region this quarter; This is 53% less than in the third quarter of this year. The region is far from the pre-pandemic highs of the second half of 2019 and early 2020. In the domestic sector, there is a 37% decrease in the fourth quarter compared to the third quarter and a 52% decrease compared to the fourth quarter. last year.
There are more than 1,000 houses in Orihuela and Alicante
Two municipalities in the province have started to exceed 1,000 houses in 2023. Orihuela ranked first with 1,181 houses, followed by Alicante with 1,099 houses. They are followed by Torrevieja with 898 points and Dénia from a further distance away with 587 points.. In fifth place is Pilar de la Horadada with 482, in sixth place is Elche with 407, in seventh place is Benidorm 400, in eighth place is San Miguel with 392, in ninth place is Guardamar with 326 and in tenth place is San Juan de Alicante with 302. In 2022, only three municipalities (Alicante, Orihuela and Pilar de la Horadada) exceeded 300 houses, compared to ten in 2023.
Looking at the fourth quarter data, Alicante stands out with 520 residencesrepresenting almost half of the municipality’s launches throughout the year. They are followed by La Vila Joiosa with 224 points and Orihuela with 182 points.
The average cost of residential construction per square meter in 2023 was 556 eurosWith an increase of 5.1% compared to the 2022 figure (€529). The increase compared to the 2019 pre-pandemic level (€486) is 14.4%.
Complaints about delays in licensing
Jesualdo Ros, secretary of the Association of Real Estate Developers of the Province of Alicante (Provia), attributes part of the increase in the number of homes that started last year to the delay in the issuance of licenses. As he noted, “a significant portion of the apartments cover the total demand of the previous three years, and this has not been possible until now due to the lack of permits.” And he regrets that many municipal councils have not taken advantage of existing tools to speed up the process, such as agreements with urban cooperation organisations.