Spain’s construction costs rise 25.1% since 2019 as structural materials lead increases
Construction costs in Spain increased by 25.1% from 2019 to 2025, according to an Apce study reported by Capital.es. Average inflation across 43 materials reached 26.7%, while costs associated with structural and large-scale works rose 39.8%.
Material inflation remains above the national rate
Construction costs in Spain increased by a cumulative 25.1% between 2019 and 2025, according to a study by the Associació de Promotors i Constructors d'Edificis de Catalunya, or Apce, reported by Capital.es. The research examined 43 building materials and calculated average inflation of 26.7% across the group. That was 8.4 percentage points above Spain’s general inflation rate over the same period.
The increase was not evenly distributed across the materials and activities included in the study. The largest cumulative rise was recorded in categories linked to structural work and large-scale construction, where costs increased by 39.8% through 2025. These categories are particularly important for developers because they are required early in a project and account for a substantial part of the budget before finishing work begins.
Apce identified 2021 and 2022 as the years with the sharpest cost increases. Growth has since moderated, but the association said this does not represent a return to pre-2021 price levels. Instead, the report described the current situation as the establishment of a new market environment, leaving contractors and developers to plan projects from a permanently higher cost base.
Catalan building costs continue to rise
In Catalonia, the estimated average cost of constructing a multifamily residential building reached €1,644.78 per square metre in 2025, up 2.7% from the previous year. The comparable cost for a standard single-family home was €1,385.01 per square metre. Office buildings were estimated at €1,468.22 per square metre, while industrial buildings had the lowest stated cost at €601.70 per square metre.
Capital.es reported that construction costs generally recorded annual increases ranging from 3.7% to 4.4%, remaining above general inflation. The figures indicate that the slower pace of growth after the 2021-2022 surge has not eliminated pressure on project economics. Developers must absorb the increases, redesign projects or pass part of the additional cost to buyers and tenants, while contractors face tighter margins when contracts do not fully account for price changes.
Labour and technical requirements add pressure
The study said materials are only one component of the increase. Labour, energy and logistics have also become more expensive, raising costs across procurement and construction. At the same time, stricter technical requirements have improved building quality and performance but have also increased design and execution complexity. Apce considers this an additional structural component in production costs rather than a temporary consequence of material-market volatility.
Spain’s construction sector is nevertheless operating with its highest employment level since 2010, according to the figures cited by Capital.es. Employment reached 277,700 workers, representing year-on-year growth of 16.5%. Stronger hiring signals continued activity, but it also increases the importance of labour availability and productivity. For producers and distributors of steel, cement, insulation and other building inputs, the data point to sustained demand alongside greater scrutiny of prices. For developers and investors, the central issue is no longer whether costs will return to 2019 levels, but whether selling prices, rents and financing conditions can support the new construction-cost base.
