9 May, 2026 @ 09:00
1 min read

Alicante construction surges by 25% as region races to fix Spain’s massive 750,000 home shortage 

cc Unsplash by Micha? Kubiak

NEW figures from the Official College of Technical Architecture of Alicante (COATA) have revealed that 3,418 homes began construction in the region during the first quarter of 2026, marking a 25.3% increase compared to the same period last year. 

This is, for the second consecutive time, the best quarter since 2008. 

Most of the growth has come from the Vega Baja area – especially in Torrevieja – and is part of the General Structural Plan (PGE), which will shape the city’s growth over the next two and a half decades.

The plan focuses on new building sites, urban renewal and affordable housing to meet future demand and fix Spain’s home shortage.

READ MORE: Spain faces deficit of 730,000 homes as 2.3 million foreigners arrive in just two years

The town alone saw 1,281 homes start construction between January and March, already more than the total for the whole of 2025.

Across Vega Baja, 1,972 homes started construction during the quarter, which is 115% higher than the same period last year and 84% higher than the last quarter.

In the last 12 months, almost 5,000 homes have been started in the area.

READ MORE: Balearic property paradox: Sellers are demanding a third more than buyers are willing to pay – and transactions are collapsing

COATA president Cristina Bordera said the figures show ’a solid evolution in the sector’, but warned there are signs the market may start slowing down.

She explained that most of the growth is happening in Vega Baja, while several other parts of the province are experiencing declines.

Bordera also warned that growing international uncertainty could begin affecting the sector, after activity slowed slightly at the end of March and the start of April.

READ MORE: The surprise locations renters are flocking to in Spain – while only two ‘cheap’ towns remain for bargain hunters on the Mediterranean coast

In the Alicante area, activity has dropped by 19% compared to the previous quarter, falling to 667 homes started. 

Meanwhile, the Marinas area saw activity fall by almost a third, with 548 homes started between January and March.

The biggest drop was around Elche, where only 120 homes started construction, 54% less than a year ago. 

The interior of the province also saw a sharp fall in activity, with only 111 homes started. 

Other towns with strong figures included San Miguel de Salinas, Guardamar del Segura, Sant Joan d’Alacant, Guardamar and Calpe.

Click here to read more Alicante News from The Olive Press.

Manon joins The Olive Press from Thomas More Hogeschool until May. She has experience writing and making podcasts.

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