Housing Construction Rises in Alicante but at Levels Insufficient to Meet Demand

Housing in Alicante is continuously rising and knows no ceiling, with a constantly rising real estate market and prohibitive prices in most cases, especially for the younger population. Repeated gatherings in recent weeks in Madrid, Barcelona, Valencia, and last Saturday in Alicante itself show a climate of weariness and concern about what is becoming one of the main current societal issues.

The increase in housing prices is proportionally due to an insufficient supply to meet demand, according to the College of Technical Architecture of Alicante (COATA), despite the increase in constructions recorded in the last year. In the 12-month period, between the third quarter of 2023 and the third quarter of 2024, 8,395 homes have been started in the province of Alicante.

This positive trend places levels close to the data recorded in 2023, the best since 2008, during the real estate boom that led to a total sector crisis. Current data tends to be close to the record year of 2023, therefore very high compared to the last 15 years," stated the president of the College of Technical Architecture of Alicante, Carlos Casas.

The homes started in 2024 will enter the market approximately in 2026. Therefore, the supply of 8,395 homes started in the last 12 months would compare with an expected demand of 24,976, according to household projections of residents in the province in 2026 by the National Institute of Statistics (INE). "We are witnessing, therefore, a considerable worsening of the supply-demand ratio that largely explains the tension in housing prices and will likely continue in the short to medium term," Casas stated.

Construction in the province of Alicante recorded an 8.5% increase in housing started during the third quarter of 2024 compared to the same period in 2023, according to the visa statistics of the College of Technical Architecture of Alicante (COATA). The number of homes started in this period amounts to a total of 2,057. "This percentage growth of more than eight points compared to the previous year improves the predictions of the previous quarter on activity levels. As can be seen, the downward trend has been reversed," stated the president of COATA.

The data is also positive in the 12-month total. During this time, a total of 8,395 homes have been started in the province of Alicante, surpassing the previous quarter, in which 8,233 homes were started. "For the entire province, there is a scenario of reduction in activity with the exception that this reduction is less than expected," stated the president of the College of Technical Architecture of Alicante, Carlos Casas.

During the third quarter of 2024, the five areas of the province of Alicante grow, to a greater or lesser extent, in their year-on-year rate. This upward trend is led by Vega Baja, which regains the leadership of activity at the provincial level, with 979 homes started.

This region significantly improves its previous data, presenting the best data for a third quarter in the last seven years and a year-on-year growth of 3.8% compared to the third quarter of the previous year. Vega Baja is the only region in Alicante that grows compared to the second quarter of the current year, specifically by 39%, thus halting the negative trend sustained since the beginning of the year.

San Miguel de Salinas is the locality with the best figures, with a total of 250 homes started during this period. It is followed by Torrevieja in second place, with 219, and Calpe in third, with 168 homes. The fourth place is for Santa Pola with 153, fifth is Almoradí with 150, and sixth is Orihuela with 120.

Las Marinas, with a total of 458 homes started, is above the levels of the third quarter of the previous year, growing by 2.7%. Although the annual total remains below that of 2023, the positive trend is maintained, keeping activity close to the maximum levels of the first half of last year, as predicted by the College last quarter.

Similarly, the Alicante area reflects this growth, prolonging the positive trend sustained since the first quarter of last year. This area has reached a new activity peak compared to the last 15 years, being the fourth successive peak since the end of 2023. Its annual total reaches up to September a total of 1,354 homes, surpassing the 1,162 of the same period of the previous year.

At the same time, the Elche area achieves its fifth consecutive quarter of growth. With a total of 208 homes started, this region increases by 13% compared to the same period in 2023. Like the other areas that decrease compared to the second quarter, the decline in this area is much lower; in fact, this data represents the best third quarter of the last 7 years.

The visa figures for the interior of the province are especially positive, following the good annual trend. Despite its moderate volume of activity in absolute terms, this region has achieved a total of 164 homes started, growing by 56% compared to the same quarter of the previous year, and 94% compared to the period from January to September of the previous year. The interior of Alicante presents the best quarterly activity data of the last seven years, being 105% higher than the average of the previous six years.