Spain Construction Market Analysis

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.
 

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.