Spain’s housing boom lifts developer gross margins—Neinor hits 30% in H1 2025 while Aedas and Metrovacesa exceed 22%. Tax Agency shows record sector margins.
Spain’s residential boom is translating into unusually high profitability for large listed developers. With house prices at record highs, strong demand and a constrained supply of new homes, companies such as Neinor Homes, Aedas Homes and Metrovacesa are reporting developer gross margins well above the national business average.
Neinor stands out at the top. The company reported a developer gross margin of 30% at the end of the first half of 2025, a slight improvement on the 29.66% recorded a year earlier. For the same period Neinor posted revenues of €146.2 million and a total gross margin of €58.1 million, which management attributes to a favorable product mix, tight cost control and price optimisation. The group also reported an EBITDA of €17.5 million and an EBITDA margin of 11.9%.
Aedas Homes likewise strengthened profitability in its 2025/26 first fiscal half (April–September). The developer posted a gross developer margin of 23.5%—up from 22.4% a year earlier—equivalent to €77 million. EBITDA reached €41 million, with a margin of 11.8%, roughly three percentage points higher than the prior year. Aedas has also cut net financial debt to €377 million with an average nominal cost of 4.2% and an LTV (loan‑to‑value) of 20.9%, improving from €539 million and 26.8% a year before.
Metrovacesa closed H1 2025 with total revenues of €132.8 million after delivering 423 homes. Its developer gross margin stood at 22.5% (after adjusting from last year’s 24.2%), and the group added €17 million from land sales.
These company results mirror a broader trend. Spain’s Tax Agency Business Margin Observatory reported that margins for real estate activities reached 32.7% in Q3 2025—the highest reading in the historical series—underscoring how real estate profitability has widened relative to other sectors. By contrast, the average margin across Spain’s productive fabric is just 13.9%.
Analysts point to structural reasons for the gap: residential development tends to be less labour‑intensive than many industries and developers can often pass rising costs on to buyers, especially when supply is limited and demand remains solvent. In the current market—with continued shortages of new housing and sustained buyer interest—those dynamics have pushed developer margins to multi‑year highs.
Outlook
Sustained high margins for large developers will depend on the balance between demand, price dynamics and input costs. If demand stays robust and supply constraints continue, major listed developers may maintain elevated profitability. However, rising interest rates, changes in affordability or a marked increase in new supply could narrow margins over time.
For now, Neinor, Aedas and Metrovacesa illustrate how Spain’s housing boom is boosting returns in the development business, and why real estate stands out among sectors in terms of profitability this year.
