Spain's Construction Industry Set for Growth Amid Rising Foreign Direct Investment and Infrastructure Projects

Strategic Insights -

The Spanish construction industry is poised to grow in real terms by 3.2% in 2025, driven by a surge in foreign direct investment (FDI), easing inflation rates, and increasing building permits issued. According to the Spanish Directorate General for Trade and Investment, FDI in the country grew by 22% in 2024, totaling EUR40.1 billion ($43.6 billion). The construction industry's value-add also grew by 2.3% year-on-year (YoY) in Q1 2025, following YoY growth of 3.9% in Q4 and 0.3% in Q3 2024. The government has announced plans to promote sustainable and innovative projects, allocating EUR240 million ($261.5 million) in February 2025. Over the forecast period, the industry is expected to register an average annual growth of 3.1% from 2026 to 2029.

Key Takeaways:

  • The Spanish construction industry is expected to grow in real terms by 3.2% in 2025, supported by a rise in Foreign Direct Investment (FDI), easing inflation rates, and rising building permits issued.
  • FDI in Spain grew by 22% in 2024, totaling EUR40.1 billion ($43.6 billion), according to the Spanish Directorate General for Trade and Investment.
  • The construction industry's value-add grew by 2.3% year-on-year (YoY) in Q1 2025, preceded by YoY growth of 3.9% in Q4 and 0.3% in Q3 2024, according to Eurostat.
  • The government has allocated EUR240 million ($261.5 million) to promote sustainable and innovative projects in February 2025.
  • Over the forecast period, the industry is expected to register an average annual growth of 3.1% from 2026 to 2029, supported by investments in renewable energy, infrastructure, and industrial projects.
  • Spain's Recovery and Resilience Plan has been updated, valuing the plan at EUR163 billion ($173.3 billion), including EUR80 billion ($85.1 billion) in grants and EUR83 billion ($88.3 billion) in loans.
  • The plan allocates EUR67 billion ($71.3 billion) for green transition projects, which are expected to support the growth of Spain's construction industry over the forecast period.
  • Spain aims to increase the share of renewable electricity to 81% of its total energy mix by 2030, up from 60% in 2024, further supporting the growth of the construction industry.

Statistics:

  • The Spanish construction industry is expected to grow in real terms by 3.2% in 2025.
  • FDI in Spain grew by 22% in 2024, totaling EUR40.1 billion ($43.6 billion).
  • The construction industry's value-add grew by 2.3% year-on-year (YoY) in Q1 2025.
  • The government has allocated EUR240 million ($261.5 million) to promote sustainable and innovative projects.
  • Over the forecast period, the industry is expected to register an average annual growth of 3.1% from 2026 to 2029.
  • Spain's Recovery and Resilience Plan is valued at EUR163 billion ($173.3 billion), including EUR80 billion ($85.1 billion) in grants and EUR83 billion ($88.3 billion) in loans.

Sources:

  • ResearchAndMarkets.com
  • Spanish Directorate General for Trade and Investment
  • Eurostat
  • Ministry of Science, Innovation and Universities
  • Recovery and Resilience Plan (RTRP) funds