Countering Rising Construction Costs

Rising Construction Costs in Spain: How Murcia Villas is Helping Buyers

The cost of residential construction in Spain increased by 4.2% in 2024, according to the Spanish ACR Direct Construction Cost Index. This index tracks the prices of building materials, manufacturing, and labour, revealing that direct construction costs account for approximately 80% of a project’s total budget.

Why Are Construction Costs Rising?

ACR’s General Manager, Guillermo Jiménez, attributes the surge to rising labour costs, driven by a shortage of skilled workers and an increase in new developments. Key materials like concrete, corrugated steel, and cement have also contributed to the price hike.

Last year, construction permits for over 127,000 new homes were issued—far exceeding the sector’s capacity of 90,000 to 100,000 homes per year. This imbalance, worsened by labour shortages, has increased costs, slowed construction, and deepened Spain’s housing supply-demand gap.

A Smarter Approach to Construction

To tackle these challenges, Jiménez advocates for construction industrialization, which can accelerate building times by 25% to 30% while reducing reliance on on-site labour. This method also enhances working conditions by shifting parts of the construction process to controlled, safer environments.

As the industry adapts to these changes, the Direct Construction Cost Index continues its upward trend, reinforcing the urgency of modernizing construction methods.

Murcia Villas’ Special Bonus Package: Making Your New Home More Affordable

At Murcia Villas, we understand that rising costs can impact buyers. That’s why we’ve introduced an exclusive Special Bonus Package for all new-build properties:

We cover your legal fees related to the purchase.
€6,000 gift or property upgrade—choose from furniture, air conditioning, a summer kitchen, pergola, electrical items, or whatever you need to complete your home.
12 months of Property Management—our bilingual team will help you settle in stress-free.
With Murcia Villas, your dream home in Spain is more affordable than ever.