The new-build property market in Spain is going through a period of relative stability, standing out for its resilience in the European context, where access to housing has been strongly affected by inflation, rising interest rates and the scarcity of developable land.
Sustained but moderate growth
During the first half of 2025, new housing starts in Spain have maintained a steady pace of growth, especially in cities such as Madrid, Barcelona, Valencia and Malaga. Although the volume of new developments is slightly down on previous years due to rising construction costs, demand remains strong, driven by domestic and international investors and a growing preference for energy-efficient housing and outdoor space.
According to recent data from the Ministry of Transport, Mobility and Urban Agenda, the supply of new housing grew by 3.8% in the last year, with a special focus on well-connected metropolitan areas with urban developments underway, such as Valdebebas in Madrid or 22@ in Barcelona.
Comparison with other European capitals
When we compare the situation with other major European cities, Spain has certain competitive advantages. In Berlin or Paris, for example, the new-build market is practically paralysed by the lack of available land and bureaucratic obstacles. Added to this is the rise in interest rates in the Eurozone, which has made mortgages more expensive and has slowed construction activity.
In London, although the luxury sector is still active, post-Brexit uncertainty and more restrictive fiscal policies have cooled the market. Meanwhile, in cities such as Lisbon and Amsterdam, rising prices and scarce land availability have put pressure on local buyers, shifting demand to the rental market.
Spain: attractive for international investors and buyers
Spain, on the other hand, remains a very attractive destination for both European buyers - especially French, German and Scandinavian - and institutional investors. Climatic conditions, quality of life and relatively more affordable prices mean that new developments have a strong international component, especially on the Mediterranean coast and the islands.
In addition, incentives for urban refurbishment and the digitalisation of the sector are beginning to yield positive results in terms of administrative agility and construction sustainability, factors that are increasingly valued by buyers.
Trends: sustainability and energy efficiency
New developments in Spain are marked by a clear commitment to energy efficiency, home automation and integration with the environment. Buyers are demanding homes with high energy certifications, sustainable air conditioning systems, landscaped communal areas and integrated services such as coworking or gyms.
In this sense, Spain is at the forefront in Europe in some developments that combine building quality with ESG (environmental, social and governance) criteria, a key aspect for institutional investors.
In conclusion, the new-build market in Spain, although not without its challenges - such as the shortage of skilled labour or the rising cost of materials - remains on a steady course in 2025. Compared to other major European capitals, it offers a balanced combination of stability, profitability and quality of life, making it a growing focus of interest for buyers and developers.
At aProperties, we keep a close eye on market developments to offer our clients the best investment and new-build housing opportunities. We invite you to discover our exclusive developments and consult with our expert advisors.