The 8,783 homes whose construction began in the province of Alicante throughout 2023 represent the highest annual figure since 2007, a year before the global crisis burst the brick bubble. It is an increase of 52% compared to 2022, when 5,768 homes were approved, and 17% compared to the best year after the crash, which was marked by the 7,532 that were built in 2018.
These are data collected by the visa statistics of the Official College of Technical Architecture of Alicante. Its president, Carlos Casas, explains that “the figures for 2023 are based above all on an extraordinary second quarter in which 3,001 homes were started. This figure exceeds in a single quarter the total number of homes started in each of the years from 2009 to 2014, a milestone that is difficult to repeat.”
However, in the third and fourth quarters of last year, activity grew over the previous year, but at a decreasing rate. While the second quarter practically doubled the number of homes compared to the April-June 2022 period (99%), the third quarter increased them by 48% and the fourth barely 13%, going from 1,651 homes in 2022 to 1,870 in 2023.
“The data for the fourth quarter, although it is higher than that of 18 of the last 28 quarters, increases the probability of the forecast of exhaustion of growth that we already indicated the previous quarter. As we said, if activity remains at the levels of the third and fourth quarter of 2023 during this year it would be a positive scenario for the sector,” Casas pointed out.
The distribution of activity between the different Alicante regions reinforces the leadership of Vega Baja, which goes from building 38.7% of the total in 2022 to 43.6% in 2023. Of the rest, only the Marinas can be compared in dynamism , going from 24.8% to 26.5% of the total in 2023. The rest of the areas reduce their percentage and thus the Alicante area goes from 22.1% to 20.1%, the Elx area of 8% to 6.5% and especially the interior sees its share of the activity reduced from 6.5% to only 3.4%.
“These growth rates have led activity in Vega Baja, Las Marinas and the Alicante area to reach maximum levels since 2008, which makes it difficult to exceed this year's figures in all three in an economic context that is expected to be less favorable. These three areas represent 90% of the activity,” commented the president of the College of Technical Architecture.
La Vega Baja and Las Marinas increase housing starts by 71% and 62% respectively; Alicante and Elx present important growth compared to 2022, but to a lesser extent. The growth of the Alicante area is 38% and that of Elx is 24%. The interior, however, behaves differently from the rest of the province with a drop of 20%.
The data for the fourth quarter in Vega Baja represents the first decrease in the last five quarters, and a pause in the notable growth that has been experienced since the second quarter of 2021. Compared to the 653 homes in the fourth quarter of 2022, the 589 of 2023 reflect a drop of 10%. The Alicante area concludes the year with a significant rebound in activity, 176% over the previous quarter, and 39% over the fourth quarter of 2022. Alicante has had four quarters of growth and is at its highest levels since 2008.
Activity in the Marinas is also at its highest since 2008, adding six consecutive quarters of growth. This area has increased by 18% over the last quarter and 32% over the fourth quarter of 2022.
The contrast with the dynamism of the three main areas of activity of the province is presented by the Elx area and the interior. In Elx, 87 homes were started in the quarter, 53% less than the third quarter of this year. The area is far from the pre-pandemic highs of the second half of 2019 and early 2020. As for the interior, in the fourth quarter there is a drop of 37% compared to the third quarter and 52% compared to the fourth quarter from last year.
In 2023, two municipalities in the province exceeded 1,000 homes started during the year. Orihuela in first place with 1,181 homes, and then Alicante with 1,099. They are followed by Torrevieja with 898 and Dénia at a greater distance with 587. In fifth place is Pilar de la Horadada with 482, in sixth Elx with 407, in seventh Benidorm with 400, in eighth San Miguel with 392, in ninth Guardamar with 326 and in tenth Sant Joan d'Alacant with 302. In 2022 only three municipalities (Alicante, Orihuela and Pilar de la Horadada) exceeded 300 homes, compared to ten in 2023.
Regarding the data for the fourth quarter, Alicante stands out above all with 520 homes, which represent almost half of those started throughout the year in the municipality. They are followed by Villajoyosa with 224 and Orihuela with 182.
The average cost of housing construction per square meter in 2023 stood at 556 euros, with an increase of 5.1% compared to the figure for 2022 (529 euros). The increase compared to the pre-pandemic level of 2019 (486 euros) is 14.4%.
