Spain Construction Market Size - By End-Use (Private, Public), By Contracting Type (General, Design-Build, Construction Management), By Scale (Mega, Major, Medium, Small), Type & Global Forecast, 2023 – 2032

Spain Construction Market Size

Spain Construction Market size was valued at USD 72.8 billion in 2022 and is projected to grow at a CAGR of over 2.5% between 2023 and 2032. Economic growth and government investments play a crucial role in expanding the construction market in Spain. During periods of economic expansion, governments allocate substantial funds toward infrastructure development, creating a demand for construction projects such as transportation networks, schools, hospitals, and government buildings. These investments not only enhance connectivity and logistics but also generate employment opportunities.

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Additionally, economic growth leads to urbanization and the need for urban development projects. Governments invest in urban regeneration initiatives, thereby rejuvenating city centers and creating new urban spaces. These initiatives boost construction projects in the residential, commercial, and public sectors, stimulating the Spain construction market.

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Urbanization and population growth lead to an increased demand for housing. As more people migrate to urban areas, the need for residential properties including apartments, houses, and condominiums rises. This drives construction activities in the residential sector to meet the growing housing demand. Urbanization necessitates the development and expansion of urban areas. The construction market in Spain is experiencing a surge in projects related to infrastructure development such as roads, bridges, utilities, and public facilities.

Political & geopolitical risks pose challenges and hinder the construction market growth in Spain. Political instability, changes in government policies, and regulatory uncertainties can impact investor confidence & delay or deter construction projects. Uncertain political environments create a climate of unpredictability, making it difficult for investors and construction companies to make long-term plans and commitments. Geopolitical factors including trade disputes, changes in international relationships, and economic instability in neighboring countries can also have adverse effects. These risks can disrupt supply chains, increase material costs, and impact foreign investments in the construction sector.

COVID-19 Impact

During the COVID-19 pandemic, the Spain construction market is faced significant disruptions due to the implemented lockdown measures, labor shortages, and supply chain interruptions. Construction sites were either temporarily closed or operated at reduced capacity, leading to project delays, higher costs & logistical complexities. Financing challenges emerged as economic activity decreased, investor confidence waned, and credit conditions tightened, resulting in a slowdown in new project starts & investment decisions. To mitigate the spread of the virus, the Spain construction industry implemented stringent safety protocols. Social distancing measures, the provision of Personal Protective Equipment (PPE), and enhanced sanitation practices became imperative on construction sites.

Spain Construction MarketTrends

The construction industry in Spain is increasingly adopting digital technologies and construction management software to improve project efficiency, collaboration, and productivity. Building Information Modeling (BIM), drones, augmented reality (AR), and virtual reality (VR) are being utilized for design, planning, and project management, leading to improved accuracy, reduced costs, and enhanced decision-making.

Spain Construction Market Analysis

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The residential segment of Spain construction market held approximately 15% revenue share in 2022. Spain is witnessing a rise in the demand for residential properties owing to factors such as population growth, urbanization, and an improving economy. Low-interest rates and favorable mortgage conditions have also increased the housing sales.

According to the Bank of Spain statistics, house prices in Spain increased by 4.3% in 2021. The year-on-year increase in house prices in the fourth quarter of 2021 stood at 8.6% compared to the fourth quarter of 2020. In addition, urban renewal initiatives are playing a crucial role in the residential construction segment growth. Many cities in Spain are focused on revitalizing the existing urban areas, renovating old buildings, and constructing new housing units.

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Spain construction market from private sector segment crossed USD 40 billion in 2022 and will witness over 2% during 2023 to 2032. Private sector firms in Spain are increasingly prioritizing sustainability in their construction projects. They are incorporating green building practices, renewable energy systems, and eco-friendly materials, thereby aligning with Spain's commitment to environmental preservation and sustainable development. Additionally, emergence of construction technology startups in Spain's private sector has fostered innovation & growth.

The general contracting segment of Spain construction market reached USD 30 billion in 2022. General contracting is a traditional approach where a construction project is awarded to a general contractor who manages the entire project. The general contractor is responsible for coordinating and overseeing all aspects of the construction process, including subcontracting various trades, and managing the project schedule and budget.

Spain Construction Market Share

Major companies operating in the Spain construction business include

• Vinci
• ACS
• Bouygues
• Eiffage
• Skanska
• Strabag
• Balfour Beatty
• Acciona
• Royal Bam Group NV
• Fomento De Construcciones Y Contratas

Spain Construction industry News

• In November 2022, AltarCAM and Terralpa announced their investments in luxury residential projects in Spain. Both firms intend to invest in projects and take advantage of the "favorable long-term fundamentals" of the high-end residential segment, where they both have expertise.

This market research report on Spain construction includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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By Type

• Residential Construction
• Commercial Construction
• Sports Facilities Construction
• Hospitality Facilities Construction
• Retail Facilities Construction
• Office Buildings Construction 
• Industrial Construction
• Infrastructure & Heavy Civil Construction
• Institutional Construction
• Healthcare Facilities Construction
• Educational Facilities Construction
• Mixed-Use Construction
• Specialized Construction
• Renovation/Remodeling Construction
• Environmental Construction

By End-Use

• Private sector
• Public sector

By Contracting Type

• General contracting
• Design-build contracting
• Construction management

By Scale

• Mega project
• Major project
• Medium project
• Small project