The housing sector has grown into a highly active field in the Alicante province. Data on business creation in this area show that one in five new firms is tied to construction or real estate activity. Elevated prices for buying and renting, which have reached historic highs, are a major driver behind this business surge.
Infonfi’s mercantile registrations reveal that out of 614 companies formed last April, 178 were connected to housing activities. Most of these firms identified as their primary activity property management or sales, or the construction of homes, including builders focused on development, rehabilitation, or refurbishment of residences and other properties.
Apart from these two main niches, the statistics also point to businesses linked to trades directly connected with housing, such as electricians and plumbers, among others.
Notably, about 80 percent of these new companies are established in coastal municipalities, chiefly Alicante, but also in towns like Dénia, Benidorm, Torrevieja, and Orihuela, areas where real estate activity is strongest.
What motivates entrepreneurs to gravitate toward this sector? Pedro Casamayor, a local real estate professional bearing the family name, notes that the real estate cycle naturally ebbs and flows. “When growth is robust, new companies appear everywhere and international franchises arrive. When the market cools, they disappear quickly,” he explains.
He adds that the current period represents a rising cycle. “We’ve had solid momentum since 2014, accelerated by the pandemic. The focus on cities like Alicante and Málaga, valued for high quality of life, is attracting substantial attention from foreign buyers,” he remarks.
He also recognizes that the current price levels in the market may act as a catalyst for new ventures, while warning that supply remains tight. “The price surge is fueled by limited inventory,” he observes, concluding that the momentum is likely to soften in the coming years. “There will be closures, for sure, because there isn’t a large share of the market to claim.”
Jesualdo Ros, secretary-general of the Association of Real Estate Developers of Alicante Province (Provia), emphasizes that the sector has always carried a strong downstream effect. “For every euro invested and every job created, a much larger amount of investment and jobs spirals around,” he states.
As an illustration, he cites diverse firms spanning construction, real estate agencies, installation services, design, interior decoration, furniture, and administrative agencies. “Nearly everything is linked; if tourism in housing stalls, the whole province feels the impact,” he stresses.
Alongside housing-related activity, the April data also highlight 75 new companies in hospitality and dining and 67 in retail, two sectors closely tied to tourism as well.