Construction costs on the rise on the Costa Blanca: how it affects house prices in 2025
Construction costs are rising on the Costa Blanca. Find out how it impacts the price of housing and what Holidaydream Homes advises.
Construction is facing a new economic strain: labor costs have reached unprecedented levels, which is beginning to put pressure on developers' margins and could affect the final price of homes.
On the Costa Blanca, where new builds, renovations and personalised projects play a major role, it is essential to understand how this trend can influence your decisions as a buyer, investor or owner. Below we analyse the local keys and what you can do to stay ahead.
⚠️ What is happening in the sector?
- According to INE data cited by Idealista, labour costs in construction rose by 4.3% year-on-year in the second quarter of 2025, reaching €3,283.67/month per worker (wages, contributions and payments).
- This is the highest value in the historical series since 2000.
- The developers warn that the shortage of qualified labour forces them to raise wages and improve conditions, making the chain work more expensive.
- If the trend persists, these increases could be passed on to the final price of new homes.
🌅 What impact can it have on the Costa Blanca?
- Higher construction cost per m²In towns such as Moraira, Jávea, Calpe or Altea, personalised or luxury projects could see a significant proportional increase due to the salary increase.
- Revaluation of renovation projectsRenovations can become a more attractive alternative to new construction, especially in old homes with potential for modernization.
- Narrower margin for local developersBuilders operating on the Costa Blanca with smaller projects may feel more pressure, as they have less margin to absorb unforeseen costs.
- Delays and rethinkingSome companies could postpone new developments until costs stabilise or rethink construction schemes (industrialisation, prefabricated, etc.).
💡 How to adapt if you're investing or building
- Choose contractors with local experience, who know the real market prices and have networks of suppliers based in the area.
- It contemplates a margin for cost scaling within the work budget.
- Evaluate more efficient or prefabricated building systems that require less labor-intensive.
- Prioritize design optimization to save unnecessary structural costs, insulation, and finishes.
- Consider the option of renovations or rehabilitation instead of new construction if the costs allow it.
✅ Conclusion
The record rise in construction labour costs represents a real challenge for the real estate sector on the Costa Blanca. But it is also an opportunity to adapt: through innovation, project strategy and monitoring.
At Holidaydream Homes Costa Blanca, we support you at every step: from the analysis of the land to the efficient construction design, so that your investment is not hit by these changing economic winds.
Sonya González | José Luis Nieto
Holidaydream Homes Costa Blanca
Be Happy | Be Smile
Moraira(North Costa Blanca)· RAICV 1595
Local real estate agency specialized in Moraira, Jávea, Benissa, Calpe & Benitachell
www.holidaydream.es
Sonya: +34 678 534 938
Jose Luis: +34 678 959 272
