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Alicante property construction activity remained high in 2024 but fell short of 2023 levels
The places where the most new homes began to be built in the province last year were Torrevieja, Alicante city and Orihuela, although they are slowing down
Housing construction in Alicante maintained a strong pace in 2024, although it did not surpass the record figures of the previous year. According to data from the Official College of Technical Architecture of Alicante (COATA), 8,353 homes began to be built last year. This marks a 4.9% decrease compared to 2023 but still represents the second-best result in the last 15 years.“The level of activity is being sustained at historically high levels, but it is significant that in a context of high demand and price tension in the sector, supply has not been able to increase, which makes it necessary for all agents to reflect on the causes that have led to this,” said Carlos Casas, president of the Alicante Association of Technical Architects.
The final quarter of 2024 saw a decline in new housing projects started compared to the same period in 2023. However, an aggregate comparison of the third and fourth quarters showed a 3.2% increase year-on-year, with 1,828 new housing starts in total.
“Taking into account the figures for the end of the year, this restriction on the growth of supply, we think that maintaining current levels would be a positive scenario for the sector in 2025, but certainly insufficient for the needs of the population of the province of Alicante,” Casas pointed out.
New construction activity by comarca
The evolution of construction activity varied significantly across different parts of the province. The Elche area and the interior saw notable growth, while the comarcas of Marina Alta, Marina Baixa, Vega Baja and the comarca of Alicante recorded declines.
In Vega Baja, housing starts fell by 13.4% to 3,315 in 2024. However, the third and fourth quarters showed positive trends, with 724 starts in the final quarter marking the best figure for this period since 2019, up 23% on the previous year. While coastal towns such as Orihuela, Torrevieja and Pilar de la Horadada saw declines, inland areas like San Miguel de Salinas and Almoradí experienced growth, though not enough to offset the overall decrease.
The two Marinas comarcas recorded 2,191 housing starts, down 5.8% from 2023. Denia remained the most active municipality here with 593 starts. The southern part of the region, including Benidorm and Villajoyosa, saw an 80% drop, while Calpe recorded a significant increase from 62 in 2023 to 328 in 2024.
The comarca of Alicante had 1,508 housing starts, a 14.4% decrease, with a sharp decline in the fourth quarter largely driving the annual drop. The capital saw the most significant reduction, with figures falling from 520 in the fourth quarter of 2023 to just 87 in 2024.
Conversely, Elche recorded 767 housing starts, up 34% from 2023, continuing a six-quarter growth trend. Inland areas also showed strong growth, with a 91% increase to 572 housing starts in 2024, marking the highest figures since 2008.
Key municipalities and cost trends
Torrevieja, Alicante and Orihuela led in housing starts for 2024, though all three recorded declines. Torrevieja led with 748 new property projects started, followed by Alicante (695) and Orihuela (676). The combined drop in these municipalities accounted for more than the province’s overall decline, as other towns experienced growth.
Denia, Elche and San Miguel de Salinas also saw significant activity, with figures of 593, 495 and 471 starts, respectively.
Meanwhile, the average construction cost per square metre in Alicante fell to €543 in 2024, a 2.3% decline from 2023. This marks a stabilisation after two years of significant cost increases.
New build property outlook for Alicante in 2025
While activity remains strong, the inability to expand supply amid high demand poses a challenge for the sector. The figures suggest that maintaining current levels would be positive, but additional growth may be needed to meet the province's housing needs in the coming years.
Image 1: Archive
Image 2: COATA
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