The Spanish residential market continues to show signs of recovery and dynamism throughout 2025, especially in the social housing and new construction segments. According to the latest data from the Housing and Land Observatory of the Ministry of Housing and Urban Agenda, the activity levels recorded during the first months of the year confirm the upward trend already seen in 2024, setting historic figures in permits and construction of new homes.
One of the main indicators of this growth is the notable increase in housing approvals granted. So far in 2025, 14,371 final approvals have been recorded, representing a year-on-year increase of 62.4%, the highest figure since 2012. In addition, 23,967 provisional approvals have been processed, 94.8% more than the previous year, confirming the strong push by public administrations to expand the affordable housing stock.
The Community of Madrid leads this progress with more than half of the country's provisional ratings. Other regions such as Catalonia, the Valencian Community, and Andalusia are also intensifying their commitment to public development and collaboration with the private sector to accelerate the delivery of social housing.
In parallel, new construction continues to gain prominence in 2025. To date, more than 136,000 new homes have been started, 23.4% more than the same period last year, and more than 100,000 have been completed, representing an increase of 13.1%. These are the best figures since 2010 and 2011, respectively, confirming a sustained recovery in the development sector nationwide.
This positive trend is partly due to new regional regulations that allow for the change of land use from commercial to social housing, as well as to more streamlined licensing processes. Despite this, the volume of subsidized housing still represents just 14% of total new construction, indicating that there is still room for improvement to meet the growing demand for affordable housing, especially for rental housing.
Experts agree that, while current data is encouraging, continued efforts will be necessary in the coming months to consolidate this trend and move toward a more balanced and accessible residential model. Continued public investment and collaboration with the private sector will be key to ensuring sustained growth and a real response to social needs.
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