This growth is mainly due to more building permits being approved, increasing exports, and greater investment in transport and energy projects.

According to the Instituto Nacional de Estadística (INE), the number of building permits rose by 3.2% in the first 11 months of 2025 compared to the year before. This comes after an even bigger increase of 8.7% in 2024. At the same time, the government is working to repair transport infrastructure damaged by Storm Kristin in January 2026, which will also help boost the construction sector. In February 2026, the government announced a €2.5 billion support package to rebuild infrastructure and help families and businesses recover.

The construction sector will also benefit from the government’s 2026 budget, which was approved in November 2025. The total budget is €140.3 billion, which is 4.5% higher than in 2025. From this, €17.2 billion is for healthcare, €7.5 billion for education, €6.9 billion for infrastructure and housing, and €2.4 billion for environment and energy.

The construction industry is expected to grow slowly but steadily at around 1.5% per year between 2027 and 2030. Growth will also be helped by the National Energy and Climate Plan for 2030. The government aims to cut greenhouse gas emissions by 55% from 2005 levels. At the same time, it plans to increase the share of renewable energy to 51% and expand solar capacity to 20.8 GW by 2030.

A good example of this shift is a project by Iberdrola, which began construction of the Tâmega Wind Complex in Braga in November 2025. This €1.1 billion project will include a power station, substations, and 38 wind turbines, and is expected to be finished by 2027.