New construction housing Spain 2025

• The average value of new-build homes in Spain (€2,528/m2) increased by 7.6% in 2024 and is 44% higher than the average for second-hand homes.
• The largest year-over-year price increases were recorded in municipalities on the Cantabrian and Mediterranean coasts and in the metropolitan areas of Madrid and Barcelona.
• The theoretical investment required to purchase a new-build home amounts to 49% of the average household's disposable income, higher than the 35% considered reasonable.

General Evolution of New-Build Housing

In 2024, the average value of new-build homes stood at €2,528/m2, 44% higher than the average price of €1,750/m2 for existing homes. Although both segments saw an acceleration in prices compared to 2023, the growth was more pronounced in the new-build segment. While the value of new-build homes grew +7.6% annually (+4.7% adjusting for inflation), the value of existing homes grew +4.0% (+1.2% adjusting for inflation).

Overall, population growth and resilient employment have sustained residential demand at robust levels since 2021, despite the sharp rise in interest rates in 2022-2023, which was intended to control inflation. During 2024, the return to a less restrictive monetary policy has given a new boost to the dynamism of the residential market. The moderation of mortgage costs and easier access to credit (less restrictive than in 2023), combined with moderate residential prices in Spain compared to other countries, have mobilized housing investment by both residents and non-residents.

Although residential demand has increased, new home sales have stagnated. Their evolution parallels the number of completed homes added to the residential stock, highlighting a limitation in available supply that leaves unmet demand.

Housing construction has increased in the last year, but is still far from meeting the increase in demand. There is a strong concentration of construction projects in secondary municipalities close to traditional employment hubs or tourist hotspots, where the depletion of available land limits growth.

New-build housing prices in 2024

The strongest price increases compared to 2023 are concentrated in areas along the Cantabrian and Mediterranean coasts and in municipalities in the metropolitan areas of Madrid and Barcelona.

The highest prices for new-build housing are found in municipalities that act as significant employment hubs or in areas with strong tourist attractions. The locations that exceed the peaks reached during the 2007 bubble (discounting the effect of inflation) are located on the Mediterranean coast. These are Málaga (Málaga), Benidorm (Alicante), and Marbella (Málaga). Also notable is Santa Cruz de Tenerife (Canary Islands), which is aligned with the peak in its series without exceeding it.

Theoretical purchasing effort

During the inflationary surge in 2021 and 2022, there was a loss of purchasing power that worsened housing access for those with average incomes. The new construction segment, generally more expensive than the second-hand segment, is aimed at profiles with greater purchasing power, such as high-income earners, foreigners, or legal entities with greater financial leverage than individual buyers.

Energy Efficiency of the Residential Stock

95% of homes built in the last 5 years are energy efficient, with a high concentration in the highest ratings (51% with an A rating and 39% with a B rating). This contrasts with the overall inefficiency of the residential stock, which is largely due to its age.