Spain Construction Market Forecast and Research Report

Spain Construction Market Overview:

The Spain construction market is projected to exhibit a growth rate (CAGR) of 3.30% during 2024-2032. The growth in housing construction, increasing investments by builders, government budgets and planning, stringent regulations for building energy efficient projects, and rising hotel industry represent some of the key factors driving the growth of the market.

Spain Construction Market Trends:

Increase in Housing Construction

Despite higher interest rates and prices of building materials, the Spanish construction sector exhibited a 2.5% quarter-on-quarter growth between January and March 2023, as per the data released by Spain’s statistics service INE. This growth rate was significantly higher than the 0.6% quarter-on-quarter growth rate recorded for the wider Spanish economy, which was also robust. The number of licensed square metres increased by 43.4% in 2022 compared to 2021, according to Eurostat data. Building permits rose strongly in both residential (+44.2%) and non-residential building sectors (+41.7%). The growth in the number of licensed square metres for residential construction was mainly due to strong growth for single-family homes in the first half of the year.

Demand for Leisure and Hospitality Development Projects

Spain, being a top tourist destination, attracts millions of visitors annually, creating a continuous need for new and improved accommodations. Investors are capitalizing on this by purchasing real estate for conversion into hotels and acquiring land for new hotel construction projects. This surge in investment not only boosts construction activity but also stimulates the broader economy by creating jobs, enhancing infrastructure, and increasing the country's appeal as a tourist hotspot. As a result, the construction market experiences robust growth, driven by the need to meet the rising demand for leisure and hospitality facilities. According to a report, hotel investment in Spain reached 3,279 million euros in 2022. A total of 133 hotels and 17,754 rooms were transacted in 2022, compared to 127 hotels and 19,043 rooms in 2021. In addition, 30 more assets (like land for hotel developments and buildings for hotel conversion) were transacted.  A record investment of €803 million ($869.86 million) was recorded in Madrid, its highest historical record to date, representing nearly 24% of national investment and more than tripling Barcelona’s figure (€225 million/ $243.68 million). A total of 19 operations were recorded in Madrid in 2022, with seven of them more than €million ($54.15 million). 

Spain Construction Market News:

• In May 2023, Cosentino Group, the Spain-based global leader in the production and distribution of innovative and sustainable surfaces for the world of architecture and design, announced plans to expand its manufacturing to North America, which would mark Cosentino’s first manufacturing facility beyond its Industrial Park in Almería, Spain and natural stone factory in Vitoria, Brazil. Subject to closing, ground is slated to break in Jacksonville, Florida, by January 2025 at the latest with a target completion date by the end of 2028 and an estimated investment of $270 million.
• In October 2023, KraftPowercon Uninterruptible Power Systems becomes part of a unique project for fossil-free power for construction sites with hydrogen-powered fuel cells. The project is led by fuel cell manufacturer Teco 2030, construction company Implenia and Norwegian state development company Enova.
   

Spain Construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type, sector, category, and end-user.

Type Insights:

• Heavy and Civil Engineering
  • Bridges
  • Roads
  • Railways
  • Airports
  • Others
• General Construction
  • Residential
    • Houses
    • Apartments
    • Others
  • Commercial
    • Hotels
    • Offices
    • Hospitals
    • Malls/Multiplexes
    • Educational Institutes
    • Others
  • Industrial
    • Chemical and Pharmaceutical
    • Metal and Category Processing
    • Textiles
    • Oil and Gas
    • Others
       

The report has provided a detailed breakup and analysis of the market based on the type. This includes heavy and civil engineering (bridges, roads, railways, airports, and others) and general construction [residential (houses, apartments, and others), commercial (hotels, offices, hospitals, malls/multiplexes, educational institutes, and others), and industrial (chemical and pharmaceutical, metal and category processing, textiles, oil and gas, and others)].

Sector Insights:

• Urban
• Rural
   

A detailed breakup and analysis of the market based on the sector have also been provided in the report. This includes urban and rural.

Category Insights:

• New
• Renovation
   

The report has provided a detailed breakup and analysis of the market based on the category. This includes new and renovation.

End-User Insights:

• Public
• Private
   

A detailed breakup and analysis of the market based on the end-user have also been provided in the report. This includes public and private.

Regional Insights:

• Northern Spain
• Eastern Spain
• Southern Spain
• Central Spain
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Spain, Eastern Spain, Southern Spain, Central Spain.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the key players include:

• Acciona S.A
• ACS Actividades de Construcción y Servicios S.A
• Cobra Instalaciones Y Servicios SA
• Dragados S.A.
• Elecnor Group
• FCC Construction
• Ferrovial S.E.
• OHLA Group
   

(Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)

Spain Construction Market Report Coverage:

Key Questions Answered in This Report:

• How has the Spain construction market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Spain construction market?
• What is the breakup of the Spain construction market on the basis of type?
• What is the breakup of the Spain construction market on the basis of sector?
• What is the breakup of the Spain construction market on the basis of category?
• What is the breakup of the Spain construction market on the basis of end-user?
• What are the various stages in the value chain of the Spain construction market? 
• What are the key driving factors and challenges in the Spain construction?
• What is the structure of the Spain construction market and who are the key players?
• What is the degree of competition in the Spain construction market?  

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Spain construction market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Spain construction market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Spain construction industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.