Alicante stands as the fifth Spanish province with the most new homes under construction, surpassed only by Madrid, Barcelona, Seville, and Málaga. Yet even this position highlights a stark gap between supply and real demand. About 6,700 homes are currently rising, but this figure falls far short of what the population needs. The demand in Spain overall far exceeds what new builds can satisfy, a pattern repeated across the country where promotion volumes simply do not reach the level required.
Across Spain, 116,285 new homes are under construction today. That total looks especially modest when set against estimates that place unmet demand well above 600,000 units. Eight provinces account for the majority of these projects, forming the country’s economic and population hubs: Madrid, Barcelona, Seville, Málaga, Alicante, Valencia, the Balearic Islands, and Murcia, according to licensed visa data compiled by UVE Valoraciones from the Ministry of Housing and Urban Agenda data.
The number of new homes started has remained fairly steady over the last two years. There was a 20 percent decline in construction activity after the Covid-19 outbreak, followed by a gradual recovery to the highest levels seen in five years. Nevertheless, the analysis reveals that only Seville and Murcia show progress in line with rising demand, while many regions face a clear disequilibrium between what is built and what is needed.
In Alicante, which ranks fifth in this list, the peak figures earlier this year showed almost 6,700 homes under construction. Still, this is widely viewed as insufficient when matched against actual need. A study led by the University of Alicante evaluated by a research group in Applied Economic Analysis under Professor Paloma Taltavull concludes that the province currently requires more than 26,000 homes, of which around 18,000 should be affordable housing. The gap has accumulated over years of limited construction activity, and projections suggest the deficit could grow by about 15,000 homes annually.
Officials are addressing this challenge with policy measures aimed at boosting affordable housing production. A new regulation on affordable housing emphasizes higher modular costs to attract developers and cuts bureaucratic hurdles and administrative barriers, all aimed at speeding up delivery while maintaining oversight.
Madrid and Barcelona continue to lead in new-build promotions, with 18,895 and 12,809 homes respectively under construction, though both cities experienced declines during the prior year. Seville and Murcia show the strongest growth in new-home construction, with Seville reporting over 9,100 units in development and Murcia about 3,500 homes under way, representing a roughly 50 percent increase from the last full year before the health crisis.
Málaga follows a similar pace to Madrid, tallying around 8,000 homes in progress, although it remains below the highs seen in 2019. Valencia reports a steady level of activity since 2019, with a light uptick in 2024 to 5,240 units, while the Balearic Islands mirror this pattern, counting about 3,740 new homes in development—roughly on par with five years ago, with a minor uptick in activity.
This landscape underscores a persistent national imbalance: demand for housing far outstrips supply in most regions, and especially in fast-growing provinces. The ongoing efforts to streamline approvals and boost affordable housing are essential steps toward narrowing the gap, but the pace of construction must accelerate to align with population needs and long-term urban planning goals. The situation remains dynamic, with regional variations shaping both investment flows and the accessibility of housing for many families.