Construction

Urban land prices soar by 15 per cent as supply shortage stifles housebuilding

Cost per square metre breaks through 200-euro barrier for first time since 2011 as deadlocked planning reforms worsen national housing crisis

24/09/2026 a las 07:06h.

Urban land prices in Spain have continued their upward spiral for a third consecutive quarter, compounding a severe housing supply deficit and driving property costs ... higher.

Data from the Ministry of Housing reveals that urban land reached 207.8 euros per square metre between April and June—surpassing the 200-euro mark for the first time since the second quarter of 2011.

The second-quarter figure represents a 15.3 per cent year-on-year surge and a 10.6 per cent increase compared with the start of the year.

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Antonio M. Romero

City prices surge as A Coruña tops national ranking

Price growth is heavily concentrated in major urban centres. While land in municipalities with fewer than 1,000 residents averaged 82 euros per square metre (a modest 1.9 per cent annual rise), cities with over 50,000 inhabitants saw average prices jump 32.9 per cent to 430 euros per square metre.

A Coruña emerged as Spain's most expensive municipality for development land, soaring to 868 euros per square metre - three times its previous quarter level - overtaking both Albacete (834 euros per square metre) and Madrid (818 euros per square metre).

The escalating cost of land threatens to deepen a national housing deficit that the Bank of Spain estimates at more than 750,000 homes. A report by OBS Business School indicates that resolving the shortage will take at least eight years and require constructing more than 230,000 new homes annually - a 128 per cent increase over 2024 production levels.

"Supply is growing where it is least needed and stalling where it is most required," warned researcher Carlos Balado. "As long as this imbalance persists, price pressures will remain concentrated in high-demand markets, making access to housing even more difficult."

Transaction volumes rise amidst legislative gridlock

Market activity also expanded during the second quarter, recording 7,879 land transactions covering 10.2 million square metres with a total value of 1.5 billion euros. Andalusia, Catalonia and Castile-La Mancha accounted for nearly half of all sales.

Despite mounting industry pressure, proposed national land law reforms remain deadlocked in parliament after more than two years. With little parliamentary support and time running out in the current legislative term, industry experts warn that administrative delays will continue to restrict land development and keep upward pressure on prices.

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