The construction market in Spain maintains its growth rate, driven by multi-unit housing, although August reflected a slight slowdown in activity.
The new housing market continues to show strength. According to the latest data from the Ministry of Housing and Urban Agenda, building permits for new construction reached 90,250 units between January and August 2025, representing a 7.6% increase compared to the same period of the previous year.
This growth consolidates the positive trend of recent months and reflects developers' confidence in the demand for new construction, especially in the multi-unit housing segment, which continues to lead construction activity.
Multi-unit housing drives growth.
Of the total permits issued through August:
- 72,825 corresponded to multi-unit housing, with a year-on-year increase of 8.9%.
- 17,389 were single-family homes, which also increased, albeit more moderately, by 2.5%.
- In contrast, projects for other types of buildings (residences, mixed-use developments, etc.) fell by 70.2%, with only 36 units approved.
These figures highlight the greater focus on multi-family housing, which responds to the growing demand in urban and metropolitan areas, where available land is more limited and space efficiency becomes a priority.
August slows the pace
Although the annual balance remains positive, August showed a temporary correction. That month, 6,189 building permits were granted, 23.5% fewer than in August 2024.
By type of housing, permits for single-family homes fell by 3.5%, while those for apartment buildings declined by 27.3%.
The average size of homes remained stable: 188.8 m² for single-family homes and 103.9 m² for apartment buildings, reflecting the balance between comfort and efficiency sought by both developers and buyers.
A solid, albeit more selective, sector
The cumulative increase in building permits confirms that the new construction market maintains a solid foundation, supported by structural housing demand and investor interest.
However, the pause observed in August could foreshadow a certain moderation in the pace of new projects, in a context where construction costs, access to financing, and the availability of urban land continue to be determining factors.
For aProperties, this context reaffirms the importance of investing in high-quality, sustainable, and well-located projects capable of meeting the evolving needs of today's buyer: energy efficiency, functional design, and long-term value.