Developers in Spain: Strong Growth & Positive Outlook for 2025-2026

Housing developers in Spain are experiencing a period of strong growth and optimism, with favorable projections for 2025 and 2026. This sector, which is fundamental to the country's economy, as highlighted at the latest APCE Congress in Malaga, is showing signs of resilience, driven by several factors that have led to a significant increase in home sales.

A decisive factor is the improvement of economic conditions in Spain. While inflation remains a challenge, employment recovery, rising disposable incomes, and financial support measures, such as assistance for first-time homebuyers, are improving access to the real estate market. Additionally, despite interest rates being subject to the European Central Bank's decisions, they remain relatively affordable, ensuring accessible financing for buyers.

Projections for 2025 and 2026 are also optimistic due to the limited supply of housing, particularly in metropolitan areas and top tourist destinations, driving up prices and sales volumes. Developers are adapting their offerings to this context, focusing on sustainable and energy-efficient projects, in line with new environmental regulations and consumer preferences.

The sector also benefits from the interest of foreign investors, attracted by the stability of the Spanish real estate market and the prospect of property value appreciation in the coming years. All this contributes to high levels of home sales, with positive outlooks for 2025 and 2026, reinforcing the strength of housing developers.

Activity of Major Developers

Metrovacesa is one of the major developers showing solid performance. As of June 2024, under the leadership of Jorge Pérez de Leza, the company had 4,354 homes under construction and 6,442 on the market. The homes under construction are set for delivery over the next two years. Meanwhile, the properties on the market cover the next three years, pointing to approximately 2,000 homes delivered annually. "We have already sold 73% of the homes scheduled for delivery in 2025 and 50% of those for 2026," the developer reports.

At the end of June 2024, Aedas Homes had a total of 9,188 active units, of which 1,112 were completed, 4,344 were under construction, and 3,732 were in the marketing or design phase. Additionally, Aedas Homes had 880 active units in the coinvestment business line, of which 718 were under construction and 162 were in the marketing phase.

Sales visibility for Aedas Homes is strong for the coming years:

• 2024 (April 2024 to March 2025): 84% of homes sold
• 2025 (April 2025 to March 2026): 48% of homes sold
• 2026 (April 2026 to March 2027): 11% of homes sold

Thus, Aedas Homes has a good outlook for future years, with expected revenue from residential promotion (BTS and BTR) around 1 billion euros annually. As of June 2024, the total sales portfolio was valued at 1.46 billion euros, compared to 1.24 billion in March 2024.

Neinor also reports strong growth. In the first half of 2024, the build-to-sell business registered a 30% year-on-year increase in sales, reaching 836 units. Total presales exceeded 300 million euros, with an average sales price of 370,000 euros per unit. The company reported a 5% increase in sales prices, surpassing expectations. Potential client visits and inquiries also increased by 10%. At the end of the first half, Neinor had a backlog of 1,761 homes, valued at 601 million euros, offering strong financial visibility for future years.

Despite rising prices, Neinor's homes remain affordable, with the price-to-income ratio below the national average (5 years compared to 7.3 years).

In the build-to-rent segment, Neinor sold 337 homes to Avalon Properties in the first half of the year. Over the past 12 months, the company sold 1,030 build-to-rent units in six projects across Madrid, Guadalajara, Valencia, and Malaga, generating approximately 250 million euros in revenue.

Kronos Homes is also optimistic about the future. "We will close the year with a portfolio of 18,000 homes, 1,500 more than in 2023. In 2024, we are celebrating 10 years of urban development leadership in Spain and Portugal, focusing on sustainable architecture and quality of life," the company notes.

For 2025-2026, Kronos Homes plans to launch 1,600 homes. The company is confident in strong sales performance, given the demand for sustainable, architecturally innovative homes in prime locations.

Outlook and Future of the Sector

Spanish housing developers are experiencing sustained growth, driven by solid demand, favorable economic conditions, and a market that continues to offer growth opportunities. Projections for 2025 and 2026 foresee increased sales volumes, further cementing the sector’s position as a key contributor to the country’s economic growth.