Housing prices in Spain continue to rise. According to notaries, the average price per square meter increased by 5% in February 2025 alone. Why is this happening? 

Manuel Balcells, CEO of Inbisa —one of Spain’s largest construction companies—reveals the main reasons. 

Prices and Taxes  

Supply Shortage  

Demand is concentrated in cities like Madrid, Barcelona, and the Basque Country, worsening the imbalance. Access to housing is especially critical in the Basque Country. 
Delays in obtaining permits (6–18 months) and bureaucratic hurdles inflate project timelines and costs. 

Labor crisis in construction  
 A shortage of workers and rising wages drive up expenses. 
“The future lies in industrialization: modular construction will reduce reliance on manual labor,” notes Balcells. 

Recommendations for the government  

Inbisa’s Position: Plans and Forecasts  
 The company delivered fewer than 100 apartments in 2024 but maintains an average annual pace of 300 units. 

2025 Goals:  

“We prioritize residential real estate, where demand is highest. The logistics sector remains secondary for now,”* Balcells concludes.  

Rising housing prices in Spain are a systemic issue requiring collaboration between businesses and authorities. Tax cuts, bureaucratic reform, and innovation in construction could drive change.