Spain’s new-build housing market continues to show remarkable strength. High demand, limited land availability, and the growing focus on energy efficiency have pushed prices upward across most of the country.
According to Tinsa’s New-Build Housing Report 2025, the average price per square metre for new construction in Spain has reached €2,528, which is 66% higher than the market’s low point in 2008.
However, not all provinces are evolving in the same way — some are seeing record-breaking price growth, reflecting the continued dynamism of Spain’s property market.

The 10 provinces where new-build prices have risen the most

At the top of the list is Málaga, leading with an impressive 24.4% increase, driven by the international appeal of the Costa del Sol, excellent transport links, and booming towns such as Marbella and Benalmádena.
The Balearic Islands follow with a 19.8% rise, where the scarcity of available land and strong foreign demand have pushed prices to €4,399/m², the highest in Spain.

In third place is Madrid, which grew 15.7%, mainly in its metropolitan area — towns like Pozuelo de Alarcón, Alcobendas, and Rivas Vaciamadrid are now outpacing the capital itself. Alongside Madrid, Cantabria has also seen a 15.7% increase, fuelled by new residents, remote workers, and international buyers seeking a better quality of life and natural surroundings.

Further southeast, Alicante stands out with a 12% increase, particularly in coastal areas such as Benidorm, Torrevieja, and Orihuela Costa, where foreign buyers remain essential. Inland provinces like Lleida and Pontevedra also saw similar growth, with Vigo recording a striking 25% increase in new-build values in 2024.

Even Badajoz has surprised with an 11.5% rise, despite being one of Spain’s most affordable provinces for resale homes — the city’s new developments and urban growth are boosting values significantly. In the southeast, Murcia has experienced a 10.4% increase, driven by activity both in the capital and in coastal towns around the Mar Menor and Águilas. Finally, Ávila closes the top 10 with a 9.4% rise, benefiting from its proximity to Madrid and growing interest in second homes away from the big cities.

Why new-build prices are rising

The rise in new-build prices is no coincidence — several factors are contributing to sustained growth:

• International demand: British, German, French, and Nordic buyers continue to drive the coastal market, attracted by Spain’s climate, safety, and lifestyle.
• Limited land supply: In major cities and tourist destinations, land for new developments is increasingly scarce, pushing prices up.
• Energy efficiency: Most new homes now have energy ratings of A or B, making them more sustainable and valuable.
• Changing lifestyle priorities: Since the pandemic, buyers have been looking for terraces, green areas, natural light, and home-office spaces — features more common in new builds.

Costa Blanca and Costa Cálida: hotspots for European buyers

In southern Costa Blanca and Costa Cálida, the trend is clear — interest in new-build properties keeps growing among both Spanish and international buyers.
Towns such as Torrevieja, Orihuela Costa, San Javier, and Pilar de la Horadada have become key investment areas thanks to their perfect mix of climate, beaches, services, and connectivity.
For many, buying a new home here means not only enjoying the Mediterranean lifestyle but also investing in a property that continues to gain value year after year.

Overall, Spain’s new-build housing market is in an expansion phase. With provinces such as Málaga, the Balearic Islands, Madrid, and Alicante leading the growth, demand remains strong nationwide.
For those looking to buy or invest, 2025 offers plenty of opportunities — but also more competition.

If you’re thinking about buying, selling, or investing in a new property on the Costa Blanca South or Costa Cálida, Munfort Real Estate can help you find the right option, with up-to-date market data and professional guidance throughout the process.