With 4.9% fewer house starts by the end of 2024 compared to the previous year, the province’s construction sector is in a state of stagnation. Permit figures from the Official College of Technical Architecture of Alicante (COATA) show that 8,353 dwellings were started in Alicante last year. In the past fifteen years, it has been the second-best figure.
Torrevieja, Alicante, and Orihuela are still in the forefront of this.
The charity says: “2025 and 2026 will be dramatic years due to the rise in housing prices”
Due to the “saturation” of pricing, foreigners residing in Alicante are “putting on the brakes” when it comes to buying and selling property.
While it is “significant” that supply has not been increased despite high demand and price stress, COATA notes that house development has maintained a “high level of activity” in 2024.
Compared to the same quarter in 2023, the number of home starts in the last quarter of 2024 has been lower. On the other hand, there were 1,828 home starts in the third and fourth quarters, a 3.2% rise over the same period last year.
The level of activity varies by region. Its reduction in the Alicante area is 14.4%, while in Vega Baja it is 13.4% and in Las Marinas it is 5.8%.
In spite of everything, the president of this professional association, Carlos Casas, is hoping that the current levels of activity will continue into 2025 so that the province’s housing needs can be met. He asserts that “they are not covered” and requests a “analysis” of the situation from both public and private organisations.
This is still lower than the average cost of execution in 2023. The cost per square metre has dropped to 543 euros, marking a relief from hikes of more than 5% during the previous two years.
With 3,315 dwellings started last year, despite a 13.4% decrease from 3,826 in 2023, La Vega Baja remains the most active region. This decline happened in the second quarter, but there has been an upward trend in activity in the third and last quarters. There was a 23% increase from the previous year, and the 724 homes sold in the last quarter are the largest quarterly total since 2019.
Inland municipalities such as San Miguel de Salinas, AlmoradÃ, Dolores and Benijófar have shown increases, which do not compensate for the decline in the coastal area, but leave the reduction for the region as a whole at 511 homes.
There were 2,191 housing starts in Las Marinas in 2024, a decrease of 5.8 percent from the previous year. The volume of activity in this area is stable, 990 homes were started in the second half of the year, while in the same period of 2023 there were 974. The fourth quarter’s year-on-year variation is a mere 0.8%.
There are a variety of designs in this area as well. Denia, with 593 homes, is the municipality with the most activity. In the south of the region there are falls in activity; between Villajoyosa, Finestrat, Benidorm and Alfas del Pi the decrease is 654 homes compared to the figure for 2023; the decreases in Benidorm and Villajoyosa stand out, reaching 80%.
In contrast, the rest of the region has increased the number of housing starts by 514, with Calpe standing out, going from 62 in 2023 to 328 in 2024.
Elche and Alicante
The Alicante area ends 2024 with 1,508 homes started, a 14.4% decrease compared to 2023. In the fourth quarter, 260 homes were started in the area, a 57% drop compared to 2023, so the annual drop compared to last year is entirely due to the fourth quarter. This behavior is concentrated in the capital, which goes from 520 homes in the fourth quarter of 2023 to 87 in the same period of 2024 and from 1,099 in all of 2023 to 695 in 2024.
The Elche area continues another quarter with very positive data. In the fourth quarter, 184 homes were started, 111% more than the 87 in the fourth quarter of 2023. It has accumulated six consecutive quarters with a positive trend and leaves the total for 2024 at 767 homes, 34% more than in 2023 and close to the highs of the last 15 years that were reached in the first quarter of 2020.
The interior
The interior of the province also presents very good figures, 128 homes have been started in the fourth quarter, 94% more than in the fourth quarter of 2023. This figure allows growth to be maintained for the entire year at very high figures. The 572 homes in 2024 represent an increase of 91% over the 299 in 2023, they are 51% higher than the average of the last seven years and the best figure since 2008.
The cities of Torrevieja, Alicante and Orihuela
At municipal level, the data show no changes compared to 2023, with the municipalities with the highest volume of housing starts: Torrevieja with 748 homes, Alicante with 695 and Orihuela with 676. However, these three municipalities have accumulated a fall of 1,059 homes compared to 2023. Taking into account that the decrease for the province as a whole in the year is 420, the rest of the municipalities have grown by 629 homes during 2024.
In fourth place was Denia with 593 housing starts, in fifth Elche with 495, in sixth San Miguel de Salinas with 471, in seventh Pilar de la Horadada with 371, in eighth Mutxamel with 340, in ninth Calpe with 328, completing the municipalities with more than 300 housing starts in the year.
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