How much does it cost to build a house in Spain?

Building a house in Spain is an increasingly popular option among investors and people looking for their dream property on the Mediterranean Sea. The cost of building a house in Spain depends on many factors: location, standard of finish, plot size, and chosen architect. In this article, we answer the most important questions about building a house in Spain, present the costs of building a house in Spain broken down by regions (with particular emphasis on Costa del Sol and Andalusia), and compare whether the cost of building a house in Spain is more advantageous than buying a ready-made property. So: How much does it cost to build a house in Spain?

How much does it usually cost to build a house in Spain?

The average cost of building a house in Spain ranges from €1,200 – €2,500/m² (excluding the cost of the plot), depending on the region and finish standard.

Costa del Sol and Andalusia: local prices

For the Costa del Sol and Andalusia region, the indicative building cost ranges from €1,800 to over €3,000/m² for a medium-high standard, depending on materials, luxury level, and project complexity (excluding plot cost). In luxury projects, prices can reach €4,000 – €5,000/m² or more, while in the province of Malaga, a new standard build costs around €1,500/m².

All of Spain: wider range

Across the whole country, how much does building a house in Spain cost? Sources indicate a range of €1,300 – €2,500/m² as the “total cost” (including fees, licenses, taxes), whereas the PEM (Presupuesto de Ejecución Material, i.e., construction works cost) alone may start from €800/m².

If you plan to build a house in Spain, Costa del Sol and Andalusia offer competitive prices compared to more touristy regions (e.g., Catalonia, Balearics). However, it is worth remembering that the cost of the plot on Costa del Sol can significantly impact the total budget, especially in premium locations like Marbella or Estepona. See available plots on Costa del Sol.

What determines the cost of building a house in Spain?

The cost of building a house in Spain depends on several key factors:

• Location and plot prices

The plot is often the largest expense. On Costa del Sol, land prices vary drastically. Coastal zones (Marbella, Estepona): €300–€2,000/m², versus inland locations (e.g., Antequera): from €50/m².

If you are looking for ready options, check the offer of villas on Costa del Sol.

• Finish standard

Economic (basic materials, simple finish): closer to the lower limit (€800–1,200/m²), medium (good-quality materials, air conditioning, pool): €1,300–1,800/m², premium (luxurious finish, smart home, high-quality joinery): €2,000–3,500/m² and more.

• Terrain shaping and foundations

A plot with slope, rock, or poor soil requires more expensive foundations and earthworks. The cost of the house’s structure (including foundations) is often €300–400/m².

• PEM versus total cost

It is crucial to distinguish: PEM (Presupuesto de Ejecución Material) = labor + building materials, total cost = PEM + architect fees + licenses + taxes + connections + buffer.

Sources indicate prices may start around €800/m² for PEM, and the most common price range for the total is €1,500–3,500/m².

Before deciding to build, it is worth comparing costs with buying a ready-made property. Read: How much does a house by the sea in Spain cost in 2025?

What additional fees need to be considered when building a house in Spain?

Besides the construction cost itself, a number of additional fees need to be taken into account.

Licenses and municipal fees

Costa del Sol / Andalusia

Municipal fees: taxes, licenses, and construction-related taxes may account for about 4–6% of the cost of execution.

All of Spain (typical structure):

• Urban planning license (tasa por licencia urbanística): usually 1–2% of PEM
• ICIO (Impuesto sobre Construcciones, Instalaciones y Obras): about 4% of PEM

Note: Specific rates differ between municipalities, so it is worth confirming them with the local city office before starting construction.

Connections and land development

If the plot is not equipped, you need to add:

• Water connection,
• Electricity connection,
• Sewage (or septic tank),
• Access road.

These costs can range from several to a dozen thousand euros, depending on the distance from infrastructure.

Buffer for unforeseen expenses

Experienced investors recommend a buffer of 10–15% of the total budget for design changes, unexpected ground conditions, material price increases, or additional works.

What are the costs of architect and site manager services in Spain?

Professional support from an architect and a site manager is an obligatory element of building a house in Spain.

Costa del Sol / Andalusia

In Andalusia (including Costa del Sol), the architect’s fee usually amounts to 5–12% of the total construction cost and includes the design, licensing support, and supervision.

All Spain (more detailed approach)

• Architect’s fee for the design: between 4 and 6% of PEM (no official rates),
• Construction management (“dirección de ejecución”, aparejador/arquitecto técnico, i.e., site manager): around 2–3% of PEM,
• Potentially health & safety coordination: additional cost.

In practice, it is best to treat this as a “professional package” calculated as a percentage of the project value. Settlement methods can vary (percentage of PEM, lump sum, staged payments), so it’s good to agree on details at the start of collaboration.

How long does the process of building a house in Spain take?

The duration of building a house in Spain depends on:

• The size and complexity of the project,
• Administrative procedures (obtaining a building license),
• Availability of contractors and materials,
• Weather conditions.

Typical schedule:

• Design and licenses: 3–6 months, depending on the municipality and project complexity,
• Construction: 8–18 months (for a single-family house 100–200 m²),
• Acceptance and formalities: 1–3 months.

From the moment of buying the plot to receiving the keys usually takes about 24 months (in an optimistic scenario) or longer if administrative or design complications arise.

For comparison: buying a ready property, e.g., a villa on Costa del Sol usually takes a month from finding the offer to signing the notarial deed (as long as financing is not needed).

Is building a house in Spain cheaper than buying a ready property?

This is one of the most common questions investors considering building a house in Spain ask. So let’s consider when building might be more advantageous?

• You have a specific vision of a house that no ready offer fulfills,
• You have found an attractive plot at a good price (e.g., inland, away from tourist hotspots),
• You plan an energy-efficient or passive house (new construction allows for better insulation, modern installations),
• You want full control over materials, room layout, and finish standard.

When is buying a ready property a better option?

• You need to move in quickly: ready house = keys in a month,
• You don’t want to deal with building formalities (licenses, supervision, acceptance),
• You buy in a premium location (e.g., first coastline) where plots are expensive or unavailable,
• You prefer certainty regarding costs; during construction, it’s easy to exceed the budget.

So: building can be cheaper if you have a good plot and control costs. But if you add time, stress, risk of budget overruns, and other surprises, buying a ready property often wins in terms of convenience.

Read on our blog: Where is the best place to buy a house in Spain? – a guide to regions, prices, and choosing a location.

Summary: how much does building a house in Spain cost?

Building a house in Spain is an investment that requires careful planning and a realistic budget. Here are the key conclusions:

• The cost of building a house in Spain averages €1,200–2,500/m² (all of Spain) or €1,800–3,000/m² (Costa del Sol / Andalusia).
• Additional fees: licenses, fees, connections can make up 10–20% of the total cost.
• Duration: 12–24 months (from design to key handover).

Building versus buying: building offers full control and customization but requires time and effort. Buying a ready property is more convenient and faster. If you are considering building a house in Spain cost-wise and want to compare with ready offers, check our database of villas on Costa del Sol and plots on Costa del Sol.

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