As Spain's skyline steadily expands with cranes, its construction sector is surging past European norms, contributing a robust 9.1% to the national GDP in 2023 as it powers the nation's economic recovery with unprecedented investments in public infrastructure, renewable energy, and a dynamic housing market.
Key Takeaways
- The Spanish construction sector contributed €145.2 billion to the national GDP in 2023, accounting for 9.1% of total GDP and marking a 4.2% year-on-year increase driven by public infrastructure investments.
- Construction industry turnover in Spain reached €192.4 billion in 2022, with a compound annual growth rate (CAGR) of 3.8% from 2018 to 2022, fueled by residential and renewable energy projects.
- The market size of the Spanish construction industry was valued at $178.6 billion in 2023, projected to grow at a CAGR of 4.1% to reach $220.3 billion by 2028, according to industry forecasts.
- The sector employed 1.28 million direct workers in Q4 2023, with total output €38.2 billion quarterly.
- Construction unemployment rate in Spain fell to 8.4% in 2023 from 11.2% in 2022, below national average of 12.1%.
- Average monthly salary in construction was €2,345 gross in 2023, 12% above 2020 levels adjusted for inflation.
- In 2023, 245,300 new housing units were completed in Spain, a 12.5% increase from 2022, with Catalonia leading at 45,200 units.
- Residential building permits issued totaled 132,400 in 2023, up 8.9% YoY, valued at €25.6 billion.
- Average price per square meter for new homes reached €1,892 in Q4 2023, 4.7% higher than 2022.
- In 2023, office construction completions totaled 450,000 sqm in Spain, with Madrid and Barcelona accounting for 65%.
- Retail space new builds reached 320,000 sqm in 2023, valued at €2.1 billion, led by logistics-adjacent retail.
- Industrial warehouse completions hit 1.2 million sqm in 2023, a 22% YoY increase, average rent €5.2/sqm/month.
- Total high-speed rail track constructed: 1,200 km since 2023 projects, €15 billion investment.
- Road infrastructure investments reached €8.4 billion in 2023, including 450 km new highways.
- Renewable energy infrastructure: 5.8 GW solar PV installed in 2023, €6.2 billion cost.
Spain's construction industry is thriving through significant investment and rapid growth across all sectors.
Commercial and Industrial Construction
- In 2023, office construction completions totaled 450,000 sqm in Spain, with Madrid and Barcelona accounting for 65%.
- Retail space new builds reached 320,000 sqm in 2023, valued at €2.1 billion, led by logistics-adjacent retail.
- Industrial warehouse completions hit 1.2 million sqm in 2023, a 22% YoY increase, average rent €5.2/sqm/month.
- Hotel construction projects under development: 145 in 2023, adding 25,000 rooms by 2026.
- Data center construction investments totaled €1.4 billion in 2023, with 150MW new capacity.
- Office vacancy rate in prime Madrid areas was 8.2% in Q4 2023, prime rents €32/sqm/month.
- Logistics parks developments: 28 new projects in 2023, total 850,000 sqm, Catalonia 40% share.
- Healthcare facilities construction output: €3.2 billion in 2023, including 5 new hospitals.
- Educational buildings completions: 120 projects in 2023, 450,000 sqm, €1.8 billion investment.
- Renewable energy industrial plants: 45 new constructions in 2023, 4.2 GW capacity added.
- Shopping center refurbishments: €850 million spent in 2023 on 15 major malls.
- Manufacturing plant expansions: 67 projects in 2023, 650,000 sqm, Basque Country leading.
- Co-working space additions: 180,000 sqm in 2023, Barcelona 35% of new supply.
- Yield on prime industrial assets averaged 4.8% in 2023, down from 5.2% in 2022.
- Sports facilities commercial builds: €420 million in 2023, including 3 arenas.
- E-commerce fulfillment centers: 22 new in 2023, 500,000 sqm, Amazon and Mercadona key players.
- Office fit-outs market valued at €1.1 billion in 2023, 15% growth YoY.
- Industrial sector energy retrofits: 2.3 million sqm completed in 2023, €650 million.
- Prime retail rents in Gran Via Madrid: €145/sqm/year in 2023.
Commercial and Industrial Construction Interpretation
While Madrid and Barcelona battle for office dominance and e-commerce fuels a warehouse boom, Spain's construction sector is shrewdly remodeling itself into a diversified portfolio, building not just shopping centers and hotels but also the country's future in healthcare, education, and renewable energy.
Employment and Workforce
- The sector employed 1.28 million direct workers in Q4 2023, with total output €38.2 billion quarterly.
- Construction unemployment rate in Spain fell to 8.4% in 2023 from 11.2% in 2022, below national average of 12.1%.
- Average monthly salary in construction was €2,345 gross in 2023, 12% above 2020 levels adjusted for inflation.
- Women represented 12.3% of the construction workforce in 2023, up from 10.1% in 2019, mainly in administrative roles.
- 42% of construction workers were aged 35-50 in Q3 2023, with youth employment (under 25) at 8.7%.
- Temporary contracts accounted for 28.5% of construction jobs in 2023, higher than the national 24.2% average.
- Skilled labor shortage affected 65% of construction firms in 2023, per CNC survey of 1,200 companies.
- Training hours per worker in construction averaged 18.2 hours in 2022, focusing on safety and digital skills.
- Immigrants comprised 22.4% of construction workforce in 2023, primarily from Romania, Morocco, and Latin America.
- Labor productivity in construction grew 2.9% YoY in 2023 to €112,400 per full-time equivalent worker.
- Overtime hours in construction totaled 4.2 million in Q4 2023, 15% up due to project deadlines.
- 17% of workers received vocational training certifications in 2023, with demand for BIM specialists up 34%.
- Construction job vacancy rate was 3.1% in 2023, highest in civil engineering at 4.2%.
- Average tenure of construction workers was 7.8 years in 2023, with 25% having over 15 years experience.
- Union membership in construction stood at 19.2% in 2023, led by CCOO and UGT.
- Health and safety incidents dropped 12% to 145,000 cases in 2023, fatality rate 2.1 per 100,000 workers.
- Remote work adoption in construction offices reached 22% in 2023, mainly for design and management roles.
- Hourly labor cost index in construction rose 5.6% YoY in Q3 2023 to index 128.4 (2021=100).
- Self-employed workers in construction numbered 412,000 in 2023, 32% of total sector employment.
- Youth apprenticeship programs placed 15,200 construction trainees in 2023, 18% increase YoY.
- Gender pay gap in construction was 21.4% in 2023, narrower than 25.1% in 2020.
- Regional employment concentration: Andalusia 18.4%, Catalonia 17.2%, Madrid 14.1% in 2023.
- Part-time employment in construction was 4.8% of workforce in 2023, mostly women at 12.3%.
- Digital skills training covered 28% of workforce in 2023, up from 15% in 2021.
Employment and Workforce Interpretation
Despite a robust and productive rebound from the pandemic—with wages up and unemployment down—Spain's construction sector remains a story of stark, persistent contradictions, from its churning temp work and aging core to its acute skilled labor shortage and the painfully slow erosion of its formidable gender and safety challenges.
Infrastructure and Public Sector
- Total high-speed rail track constructed: 1,200 km since 2023 projects, €15 billion investment.
- Road infrastructure investments reached €8.4 billion in 2023, including 450 km new highways.
- Renewable energy infrastructure: 5.8 GW solar PV installed in 2023, €6.2 billion cost.
- Water treatment plants: 12 new facilities in 2023, capacity 1.2 million m3/day.
- Port expansions: €2.1 billion invested in 2023, Algeciras and Valencia key ports.
- Airport infrastructure upgrades: €1.3 billion in 2023, Barajas new terminal phase.
- NextGenerationEU funds allocated to construction: €25.4 billion by end-2023, 68% disbursed.
- Wind farm constructions: 2.1 GW added in 2023, onshore 70%, €2.8 billion.
- Urban public transport: 180 km new metro/tram lines in 2023, Madrid and Bilbao.
- Flood defense works: €950 million in 2023, 320 km river embankments.
- Hospital infrastructure public projects: 8 new builds in 2023, 1,200 beds added.
- School constructions: 250 new public schools in 2023, €1.2 billion.
- Desalination plants expansions: 4 projects in 2023, +1.5 million m3/day capacity.
- Railway electrification: 650 km completed in 2023, €3.1 billion.
- Green hydrogen infrastructure: 5 pilot plants in 2023, €420 million EU-funded.
- Bridge constructions/rehabilitations: 45 major projects in 2023, €750 million.
- Sustainability certifications for public infra: 72% LEED/BREEAM in 2023 projects.
- Public-private partnerships in infra: 22 new contracts in 2023, €12 billion value.
- Tunnel constructions: 18 km new tunnels in 2023, mainly rail and road.
- Waste management facilities: 15 new plants in 2023, capacity 2.1 Mt/year.
Infrastructure and Public Sector Interpretation
Spain's construction sector is not merely building for today, but boldly and expensively laying down the very arteries, lungs, and sinews of a modern, sustainable nation—from high-speed veins and renewable energy lungs to flood-proof sinews and new synapses of public transit, all underwritten by a colossal European bet on its future.
Market Size and Growth
- The Spanish construction sector contributed €145.2 billion to the national GDP in 2023, accounting for 9.1% of total GDP and marking a 4.2% year-on-year increase driven by public infrastructure investments.
- Construction industry turnover in Spain reached €192.4 billion in 2022, with a compound annual growth rate (CAGR) of 3.8% from 2018 to 2022, fueled by residential and renewable energy projects.
- The market size of the Spanish construction industry was valued at $178.6 billion in 2023, projected to grow at a CAGR of 4.1% to reach $220.3 billion by 2028, according to industry forecasts.
- In Q4 2023, Spain's construction production index rose by 2.8% compared to Q4 2022, with building construction up 3.1% and civil engineering up 1.9%.
- Total investment in fixed assets within the construction sector amounted to €28.7 billion in 2022, representing a 5.6% increase from the previous year.
- The construction industry's value added grew by 4.5% in 2023, contributing to Spain's overall economic recovery post-COVID, with services to construction adding €12.3 billion.
- Spain's construction output per capita stood at €3,045 in 2023, higher than the EU average of €2,812, reflecting robust domestic demand.
- From 2019 to 2023, the sector's average annual growth rate was 3.2%, with peaks in 2021 at 6.8% due to EU recovery funds.
- In 2023, new construction orders in Spain totaled €156.8 billion, a 7.2% rise YoY, led by public sector contracts at 42% of total.
- The industry's gross value added at basic prices was €112.4 billion in 2022, with a productivity index of 105.3 (2015=100).
- Construction employment drove 12% of Spain's total job creation in 2023, with sector revenue projected to hit €210 billion by 2025.
- The sector's export turnover related to construction materials reached €18.9 billion in 2023, up 8.4% from 2022.
- Spain's construction PMI averaged 52.3 in 2023, indicating expansion, with the highest reading of 55.1 in Q3 due to housing demand.
- Total construction investment as a percentage of GDP was 6.8% in 2023, compared to 5.9% in 2019.
- The residential construction subsector grew by 5.9% in 2023, contributing 45% to overall industry growth.
- Civil engineering works output increased by 3.4% in 2023 to €42.1 billion, supported by EU NextGenerationEU funds.
- Non-residential building construction turnover hit €68.3 billion in 2022, with a 4.1% YoY growth.
- The construction sector's intermediate consumption rose to €89.6 billion in 2023, reflecting higher material costs post-Ukraine crisis.
- Spain ranked 12th in Europe for construction output in 2023 at €142 billion, behind Germany and France.
- Digital construction market within Spain projected to grow from €2.1 billion in 2023 to €3.8 billion by 2028 at CAGR 12.5%.
- Prefabricated construction segment valued at €4.7 billion in 2023, growing 6.2% YoY due to sustainability trends.
- Heavy construction equipment market in Spain reached €1.9 billion in 2023, up 7.1%.
- In 2023, 28% of construction firms reported revenue growth over 10%, per industry survey of 500 companies.
- Sector's R&D expenditure totaled €1.2 billion in 2022, 0.8% of turnover, focusing on green tech.
- Construction bankruptcy rate dropped to 1.2% in 2023 from 2.1% in 2022, signaling recovery.
- Average profit margin in Spanish construction firms was 4.7% in 2023, up from 3.9% in 2022.
Market Size and Growth Interpretation
Spain’s construction sector is having a serious glow-up, strategically rebuilding both the economy and its reputation, brick by subsidized brick.
Residential Construction
- In 2023, 245,300 new housing units were completed in Spain, a 12.5% increase from 2022, with Catalonia leading at 45,200 units.
- Residential building permits issued totaled 132,400 in 2023, up 8.9% YoY, valued at €25.6 billion.
- Average price per square meter for new homes reached €1,892 in Q4 2023, 4.7% higher than 2022.
- Housing starts in Spain were 156,700 in 2023, with 62% multi-family units in urban areas.
- Renovation and rehabilitation works accounted for 38% of residential construction activity in 2023, totaling €18.4 billion.
- Social housing completions reached 23,100 units in 2023, supported by €2.1 billion in public subsidies.
- In Madrid, residential construction output was €12.3 billion in 2023, 22% of national residential total.
- Energy-efficient new homes certified under Passivhaus standard numbered 4,200 in 2023, up 25%.
- Vacant housing stock stood at 3.4 million units in 2023, with 15% suitable for short-term rental conversion.
- Residential mortgage approvals grew 14.2% to 350,600 in 2023, average loan €142,000.
- Prefabricated homes market in residential sector valued at €1.8 billion in 2023, CAGR 9.2% since 2019.
- Coastal residential developments saw 12% YoY price increase to €2,450/sqm in 2023.
- 52% of new residential builds incorporated solar panels in 2023, per CTE compliance.
- Housing affordability index in Spain was 7.2 in 2023 (Barcelona 9.8, Madrid 8.5).
- Demolition permits for old residential stock: 8,200 in 2023, mainly in urban renewal projects.
- Rental housing completions: 42,300 units in 2023, 17% of total new builds.
- Average construction time for residential projects was 18 months in 2023, down 8% due to modular tech.
- Residential sector carbon emissions from construction dropped 11% to 4.2 MtCO2e in 2023.
- 31% of residential projects delayed in 2023 due to material shortages, average delay 3.2 months.
- Luxury residential sales volume: 12,500 units in 2023, average price €850,000.
Residential Construction Interpretation
Spain's construction industry is building more homes than it has in years, yet stubbornly high prices and a paradox of booming permits alongside material delays suggest it's furiously sprinting to stay in place, all while trying to decarbonize, modernize, and decide what to do with millions of empty apartments.
Sources & References
- Reference 1STATISTAstatista.comVisit source
- Reference 2INEine.esVisit source
- Reference 3GLOBALDATAglobaldata.comVisit source
- Reference 4ECec.europa.euVisit source
- Reference 5BDEbde.esVisit source
- Reference 6OXFORDECONOMICSoxfordeconomics.comVisit source
- Reference 7MPTFPmptfp.gob.esVisit source
- Reference 8REPORTLINKERreportlinker.comVisit source
- Reference 9ICEXicex.esVisit source
- Reference 10MARKITECONOMICSmarkiteconomics.comVisit source
- Reference 11DATAdata.worldbank.orgVisit source
- Reference 12ANECAaneca.esVisit source
- Reference 13FEMPfemp.esVisit source
- Reference 14FIIEfiie.comVisit source
- Reference 15MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 16AENORaenor.comVisit source
- Reference 17RESEARCHANDMARKETSresearchandmarkets.comVisit source
- Reference 18ASEPINCHAasepincha.orgVisit source
- Reference 19IDIidi.gob.esVisit source
- Reference 20SEDEsede.agenciatributaria.gob.esVisit source
- Reference 21SEPEsepe.esVisit source
- Reference 22MUJERESENIGUALDADmujeresenigualdad.orgVisit source
- Reference 23EPAepa.ine.esVisit source
- Reference 24MTOMEmtome.gob.esVisit source
- Reference 25CNCcnc.esVisit source
- Reference 26FUNDAEfundae.esVisit source
- Reference 27MITESmites.gob.esVisit source
- Reference 28EDUCACIONYFPeducacionyfp.gob.esVisit source
- Reference 29EURESeures.europa.euVisit source
- Reference 30CCOOccoo.esVisit source
- Reference 31INSSTinsst.esVisit source
- Reference 32ADECCOadecco.esVisit source
- Reference 33ATAata.esVisit source
- Reference 34TODOFPtodofp.esVisit source
- Reference 35MPRmpr.gob.esVisit source
- Reference 36INCIBEincibe.esVisit source
- Reference 37MIVAUmivau.gob.esVisit source
- Reference 38INDOMIOindomio.esVisit source
- Reference 39EPDATAepdata.esVisit source
- Reference 40GREENBUILDINGCOUNCILSPAINgreenbuildingcouncilspain.esVisit source
- Reference 41COMUNIDADcomunidad.madridVisit source
- Reference 42PASSIVHAUSSPEpassivhausspe.esVisit source
- Reference 43CADASTREcadastre.meh.esVisit source
- Reference 44CERTISAcertisa.esVisit source
- Reference 45TINSAtinsa.esVisit source
- Reference 46CODIGOTECNICOcodigotecnico.orgVisit source
- Reference 47NUMBEOnumbeo.comVisit source
- Reference 48IDEALISTAidealista.comVisit source
- Reference 49CEMEXESPANAcemexespana.comVisit source
- Reference 50MITECOmiteco.gob.esVisit source
- Reference 51KNIGHTFRANKknightfrank.comVisit source
- Reference 52JLLjll.esVisit source
- Reference 53CBREGLOBALcbreglobal.comVisit source
- Reference 54PROLOGISprologis.esVisit source
- Reference 55HOSTELTURhosteltur.comVisit source
- Reference 56DATACENTERDYNAMICSdatacenterdynamics.comVisit source
- Reference 57CUSHMANWAKEFIELDcushmanwakefield.comVisit source
- Reference 58AEDIFaedif.esVisit source
- Reference 59SANIDADsanidad.gob.esVisit source
- Reference 60EDUCACIONeducacion.gob.esVisit source
- Reference 61REEree.esVisit source
- Reference 62ICSCicsc.orgVisit source
- Reference 63SPRIspri.eusVisit source
- Reference 64REGUSregus.comVisit source
- Reference 65COLLIERScolliers.comVisit source
- Reference 66CSDcsd.gob.esVisit source
- Reference 67LOGISTICSSPAINlogisticsspain.comVisit source
- Reference 68TURNERANDTOWNSENDturnerandtownsend.comVisit source
- Reference 69IDAEidae.esVisit source
- Reference 70ADIFadif.esVisit source
- Reference 71MITMAmitma.gob.esVisit source
- Reference 72PUERTOSpuertos.esVisit source
- Reference 73AENAaena.esVisit source
- Reference 74PLANDERECUPERACIONplanderecuperacion.gob.esVisit source
- Reference 75APPAappa.esVisit source
- Reference 76CETURBceturb.esVisit source
- Reference 77ACUAMEDacuamed.esVisit source
- Reference 78ENAGASenagas.esVisit source
- Reference 79FOMENTOfomento.gob.esVisit source
- Reference 80GBCSPAINgbcspain.esVisit source
- Reference 81MPTFPmptfp.esVisit source
- Reference 82ADIFALTA VELOCIDADadifalta Velocidad.esVisit source