Housing construction in the province of Alicante saw its strongest start since 2008.
According to building permit data from the Alicante College of Technical Architecture (COATA), 2,727 homes were started in the province during the first quarter of the year – 49% more than in the final quarter of 2024 and 53% higher year-on-year. This marks the second-highest figure in recent years, surpassed only by the summer of 2023 and represents the best first-quarter result in the past 17 years.
“The start of the year reflects a notable intensity of activity, with figures not seen since before the 2008 crisis. This momentum is driven by an economic environment that, despite ongoing uncertainties, remains conducive to housing development,” says Carlos Casas, president of the Alicante College of Technical Architecture.
Technical architects report that housing construction in Alicante has reached its highest level since 2008, with 9,301 homes started over the past 12 months, surpassing the 8,783 recorded in the previous period.
According to Carlos Casas, “the market is reacting to demand pressure by increasing activity. The fact that it has significantly exceeded the previous record is a clear indication that the sector is working to meet the challenge posed by housing demand.” However, he advises caution, warning against assuming the current growth rate will continue. In fact, he does not anticipate further increases in the coming quarters.
Generalised growth by region
Construction activity across the province's regions saw notable growth in Q1 of the year. Areas such as Las Marinas, the Elche region and the province’s interior recorded activity levels not seen since 2008.
Vega Baja continues to lead in housing starts, with 915 new homes begun. However, its growth has been more modest, registering just a 1% increase compared to the same period last year. Despite this, it marks the second-strongest quarter for the region since 2019.
Las Marinas ranks second in construction volume, with 801 homes started – a 50% increase over the previous quarter and a remarkable 134% rise compared to the same period last year. With 2,650 homes initiated over the past 12 months, the area has reached its highest level of activity since 2008, reinforcing a clear upward trend.
The Alicante region has also shown strong signs of recovery, recording 617 housing starts. This represents a 137% increase over the previous quarter and a 95% rise compared to the first quarter of 2024.
The Elche area has also posted strong results, with 233 housing starts, up 27% from the previous quarter and 89% year-on-year. It has sustained growth for seven consecutive quarters, reaching a total of 877 homes started over the past 12 months.
Meanwhile, the province’s interior has recorded solid progress, with 161 housing starts. This represents a 26% rise from the previous quarter and a 79% increase compared to the first quarter of 2024. The area has now seen five straight quarters of growth, reaching its highest level of activity since 2008.
By municipality, San Miguel de Salinas and Mutxamel recorded the highest number of housing starts between January and March 2025, with 275 and 260 homes, respectively. They were closely followed by Alicante (258 units), Villajoyosa (257), Orihuela (204) and Dénia (200).
The report also highlights a continued rise in the average construction cost of new homes, which reached €559 per square metre in Q1 – an increase of 2.9% compared to the 2024 annual estimate.