Building Costs Per Square Metre in Spain – Houses

Construction Costs per Square Meter in Spain (Data Updated to 2025)

3 Bedroom Villa for Sale, GFA 98m2 in Valencia, Spain – Price € 391 950

Recent analysis from official Spanish government sources, including the National Statistics Institute (INE) and the Ministry of Transport, Mobility and Urban Agenda (MITMA), alongside insights from real estate firms like Sociedad de Tasación and Tinsa, has provided a comprehensive look into the nation’s construction costs. Experts report that these costs are tracked through construction sector cost indices, encompassing labor, materials, and intermediate consumables, as well as the Housing Price Index (IPV) from the INE, which covers both new and second-hand properties. Authorities note that no uniform “fixed cost” exists, as figures fluctuate depending on project type (residential building or civil engineering), geographic location across autonomous communities, material quality, and the base year (currently 2010, with a shift to 2021 in progress).

The most recent data corresponds to the second and third quarters of 2025, with positive annual variations due to inflation, labor shortages, and increased demand. The average construction cost for new housing is approximately 1,300-1,500 €/m², excluding land and project costs. Below, I detail the key findings.

National Cost Summary (2025)

Based on the Construction Sector Cost Index (MITMA) and the IPV (INE):

Indicator	Average Value (2025)	Annual Variation	Notes
Cost of New Housing Construction	1,323 €/m² (September 2025)	+3.76% (year-on-year)	Includes labor (28-48% of total) and materials. Highest since 2020. Source: Sociedad de Tasación (Real Estate Sector Trends Report).
Average Free Housing Price (New and Used)	1,959-2,047 €/m² (Q2-Q3 2025)	+6.9% to +10.01%	IPV INE: +12.7% annually (new: +12.1%; used: +12.8%). Tinsa: 1,959 €/m²; Sociedad de Tasación: 2,047 €/m².
Specific New Housing Price	2,528 €/m² (2024 average, 2025 trend)	+7.6%	Includes finishes; higher for sustainable new builds (up to 2,500 €/m² modular). Source: Tinsa and PrecioM2.com.
Effective Hourly Labor Cost (Construction)	~25-30 €/hour (estimated Q2 2025)	+5.4% (ICLA INE)	Harmonized Labor Cost Index (ICLA): +3.8% annually adjusted. Includes Social Security. Source: INE.
Material Indices (Base 2011)	+2-5% annually (general)	Variable by material	Cement and steel: +4%; wood: +3%. Source: INE (Material Price Indices).

General Notes:

Cost Structure (Base 2010, MITMA): Labor ~28-48% (weighted by professional categories); intermediate consumables (materials) ~48-50%; remainder in others (transport, etc.). For residential building: 75% of total; civil engineering: 25%.
Variations by Type: Traditional construction: 800-1,500 €/m²; modular/sustainable: 1,500-2,500 €/m². Excludes VAT (21%), permits, and urban development.
2025 Trend: Increase due to an aging workforce (average age 45 years) and micro-enterprises (85% <10 employees). Demand exceeds supply 4:1, driving prices up.

Variations by Autonomous Community (Q2-Q3 2025)

Costs vary significantly by region, influenced by wages, local materials, and demand. Data from IPV INE and Tinsa (housing prices as a construction proxy):

Autonomous Community	Average Cost/Price per m² (New/Free Housing)	Annual Variation (%)
Balearic Islands	5,048 €/m²	+11.6%
Community of Madrid	3,500-4,000 €/m² (estimated)	+21.7%
Catalonia	3,080 €/m²	+10-12%
Canary Islands	3,100 €/m²	+13.4%
Andalusia	2,000-2,500 €/m²	+19.8%
Valencian Community	2,200 €/m²	+16.9%
Basque Country	2,800 €/m²	+10.3%
Extremadura	1,265 €/m²	+1-4% (more affordable)
Castilla-La Mancha	1,244 €/m²	+1-4%
National Average	1,959-2,047 €/m²	+6.9-10%

Notes: In the Balearic Islands and Madrid, costs exceed 3,000 €/m² due to high demand and regulations. In inland regions, they drop below 1,500 €/m². Source: INE IPV, Tinsa, and Fotocasa Real Estate Index.

Influential Factors and Recommendations

Inflation and Materials: INE indices show increases in steel (+4%) and energy, impacting ~50% of costs. Transition to base 2021 (MITMA) will adjust weightings.
Labor: +5.4% annually (ICLA INE), with shortages in coastal regions.
Sustainability: “Green” projects add 10-20% (e.g., efficient insulation).
Tips: For accurate budgets, consult the INE Cost Calculator or MITMA. Always include a 10-15% margin for unforeseen expenses. Verify with local architects, as regional regulations (e.g., CTE in Spain) affect designs.

Data based on official publications up to October 2025; variations are quarterly. For provincial details, I recommend INEbase or MITMA. If you need a focus on a specific region, let me know.