Spanish construction sector hit by surge in bankruptcies as housing market strains

The 2025 Bankruptcy Statistics Report shows that one in five construction and real‑estate firms in Spain entered insolvency last year, a share that has remained steady. Insolvencies in real‑estate subsectors rose 13.2%, and 98.3% of the proceedings ended in liquidation rather than restructuring. The average duration of complex bankruptcies is about 1,714 days, leaving many firms unable to complete projects. Industry groups point to rising material costs after the Ukraine war, volatile energy prices and a shortage of skilled labour as key drivers of the sector’s financial fragility.

At the same time, integrated real‑estate agencies are seeking to mitigate the credit bottleneck that stalls residential sales. Best House, through its Best Credit division, links property brokerage with mortgage brokerage, securing financing for buyers in up to 100% of the appraised value. With preferential agreements with more than 30 national lenders, the model promises better interest‑rate terms and full‑value mortgages, helping to preserve transactions that might otherwise fall through and creating a new revenue stream for agencies.