New build property prices in Spain surged by 7.6% in 2024, and now cost 44% more than resale homes on average, according to the latest annual sector report from appraisal company Tinsa.
Spain’s property market continues to show signs of stress, particularly in the new build segment where prices have soared well above resale values. According to the Vivienda de Obra Nueva 2025 report from Tinsa—the largest appraisal company in Spain—the average price of new build housing in Spain reached €2,528/m² in 2024, a 7.6% increase year-on-year. In comparison, resale prices grew just 4%.
This places new build homes a striking 44% above the average price of second-hand properties, and 10% higher than the peak reached during the 2007 property bubble—at least in nominal terms. Adjusted for inflation, however, prices today are still 21% below their pre-crisis peak.
The affordability gap is also widening. Buying a new build now requires 49% of a household’s disposable income—well above the 35% threshold considered critical for housing access. When second-hand homes are included, the national effort ratio drops to 36%, but this still signals affordability issues for many.
Supply not keeping up with demand
Despite strong housing demand fuelled by population growth, accumulated savings, stable employment, and investor appetite, the supply of new build homes remains tight. Sales volumes have stagnated while demand continues to rise, putting sustained upward pressure on prices.
According to Cristina Arias, head of research at Tinsa by Accumin, “The construction of new homes increased over the past year, but it still falls short of meeting demand. We’re seeing a high concentration of new developments in secondary municipalities close to major employment hubs or tourist destinations, where land shortages limit expansion.”
This imbalance is especially pronounced along the Cantabrian and Mediterranean coasts, and in the metropolitan areas of Madrid and Barcelona, where the most significant annual price increases were recorded.
A market increasingly geared towards investors and tourism
With affordability slipping out of reach for average earners, developers are increasingly tailoring new build supply to the tourism and investment markets. Many coastal municipalities have focused on high-spec holiday homes for international buyers or domestic second-home seekers, while legal entities (like investment funds and developers) are playing a larger role in purchases.
“This is a natural response to the financial reality,” says Arias. “Entities with deeper pockets are better positioned to absorb rising costs, especially in high-demand areas.”
Prices since the crisis: nominal vs. real terms
Since the 2008 crash, new build prices in Spain have risen 66% in nominal terms and are now 10% above the 2007 bubble peak. But adjusting for inflation paints a different picture: prices are up 35% from the post-crisis low, but still 21% below 2007 levels in real terms.
That said, a few hotspots are now more expensive than they were during the bubble, even after adjusting for inflation. These include the Balearic Islands (+19%), Málaga and Benidorm (+2%), with Marbella and Santa Cruz de Tenerife close to matching their previous highs.
Regional highlights: Balearics, Madrid, and Málaga lead the way
The price of new builds in 2024 varied widely across Spain’s regions, from €4,399/m² in the Balearics to just €1,385/m² in Extremadura. The Balearics, Madrid, Cantabria, and Andalucía recorded the biggest nominal increases, with rises of up to 19.8%.
In provincial terms, Málaga, the Balearics, Madrid, and Cantabria saw the steepest gains, while provinces like Palencia, Soria, and Ourense barely moved. New build values remain at post-crisis lows in places like Guipúzcoa.
The effort required to buy a new build now exceeds 35% of disposable income in almost all provinces, and passes 50% in some—particularly in Málaga, Cádiz, the Balearics, Alicante, Madrid, Barcelona, and even parts of Extremadura.
Where are prices highest?
The most expensive new builds are found in Barcelona, San Sebastián, Madrid, Bilbao, and Palma, as well as holiday hotspots like Marbella and Benidorm. On average, prices in provincial capitals are between 13% and 59% higher than resale homes. In major secondary towns, the premium can reach 89%.
Top risers in 2024 included Vigo (+25%), Málaga capital (+24.4%), Alcoy, Santander, Benidorm, Vélez, and Cartagena (all close to +19%).
On the flip side, prices in cities like Ourense, Linares, and Palencia are still scraping along the bottom.
Metropolitan areas: Madrid and Barcelona
In the Madrid metro area, Pozuelo de Alarcón and Alcobendas lead the price table, even topping Madrid city (€4,688/m²). The biggest gains were in Parla (+19.5%), Alcobendas (+15.8%), Alcorcón (+14.5%), and Coslada (+13.5%).
Barcelona’s suburbs didn’t exceed the capital’s €4,968/m² average, but still saw sharp rises in Castelldefels (+24.5%), Manresa (+16.2%), and Santa Coloma de Gramenet (+12.5%).
Affordability in these metro areas is tight across the board, with new build purchases requiring more than 35% of disposable income almost everywhere—and more than 70% in Barcelona itself.
Conclusion
Spain’s new build market is facing a growing affordability crisis. Prices are rising fast, driven by undersupply, investor demand, and a shift towards tourism-focused development. With affordability ratios creeping well above safe thresholds, and inflation-adjusted values still below the 2007 peak, the market remains distorted and increasingly out of reach for ordinary buyers—especially in key urban and coastal areas. If supply fails to catch up soon, these tensions are likely to intensify.
