Construction activity in the Alicante province is currently showing a healthy uptrend. The latest quarterly data confirm this, with a 48% year-over-year rise and 1,895 new homes entering service, led by the Vega Baja area. These figures, drawn from visa statistics reported by the Official Technical College of Architecture of Alicante, indicate a 68% jump in real estate activity since the start of the year, reaching 6,913 homes, even as much of the rest of Spain experiences a slowdown.
The visa statistics from the Alicante Official Technical College of Architecture reveal that the number of housing starts in the past twelve months has hit a new high of 8,564, surpassing the previous peak by 7%. This level marks the strongest activity since 2007.
This surge shows that the momentum is not only pulling away from the pandemic lull of 2020 but also reversing the downward trend seen at the end of 2019. Carlos Casas, president of the Alicante College of Architecture, notes that these figures stand out clearly in the broader economic picture. In the face of Spain’s slower economy, the province is maintaining a robust pace.
He adds a caveat: while there may be future slowdowns, maintaining activity near current levels would be a very positive sign for the country’s construction sector.
La Vega Baja continues to rise
La Vega Baja distinguishes itself with strong activity in recent quarters, driven mainly by sustained demand from international buyers. In fact, the region’s performance fuels most of the province’s dynamism.
During this period, 943 homes started in Vega Baja, up 96% from the third quarter of 2022 and accounting for half of all housing starts in the region for the quarter. The accumulated twelve-month total now tops the 2019 peak, with 3,818 starts compared to 3,890 in the current period, marking nine consecutive quarters of growth since mid-2021.
In the third quarter, 446 houses began construction in Las Marinas, up 6% from 419 starts in the same quarter last year, though 29% below the 633 starts in the second quarter. Even so, the region maintains its positive trajectory for the fifth straight quarter.
Casas emphasizes that Marinas has been at peak activity since 2008, so any incremental growth would create a level not seen in the last 15 years. The ongoing sequence of higher quarters pushes housing starts for January through September well beyond the prior five-year period, with 2018 still the best year on record for starts at 1,179. If the current pace holds, 2023 could post a year that is about half again as large as that figure.
Elche, the fastest growing region
The Elche region recorded the strongest growth among all areas, with 184 homes started in the quarter, up 116% from the third quarter of 2022. A slight 19% dip from the second quarter is the smallest drop among the regions when looking atquarter-to-quarter changes.
This positive trend seems to have temporarily reversed the region’s slower activity since early 2020. Over the last year, 569 homes began construction, versus 470 in the previous quarter, a 21% rise that hasn’t occurred in nine quarters. The regional College president notes that the year-end outlook for the area will reveal how the year ultimately unfolds.
In the broader Alicante zone, 217 homes started in the third quarter, up 6% from the previous year’s third quarter, though still 67% below the second-quarter figure. Looking at the year-to-date, 1,162 starts from January to September surpass 2022’s total of 840 by 38%.
Housing construction in Alicante fell 6.4% in the third quarter
A total of 105 homes began in the province’s inland areas during the third quarter, the only subregion showing an uptick compared with the prior quarter when 74 starts were recorded. This inland segment also rose by 10% from 95 in the third quarter of 2022. Yet overall activity remains flat as the year progresses, with year-to-date starts in September totaling 233, while 2021 and 2022 ended at 233 and 234 respectively.
city ranking
The three-month period again shows Orihuela and Torrevieja at the forefront, each starting 306 homes. Pilar de la Horadada follows with 164 points, Elche with 156, Jávea with 127, and then small towns like l’Alfàs del Pi at 84 and Alicante at 73.
Year-to-date, Orihuela leads with 999 starts, followed by Torrevieja with 831 and Alicante with 579. These are the only three municipalities in the province with more than 500 starts so far this year.
The average construction cost per square meter through September stands at 567 euros, reflecting a 9% increase from the 2022 average.