10 Dec, 2025 @ 14:00
1 min read

Spain turns to ‘IKEA-style’ flat-pack homes to solve massive housing shortage

SPAIN is betting on ‘IKEA-style’ kit homes to solve a massive housing deficit that has left the country short of 600,000 properties.

A quiet revolution is taking place in the construction industry, with companies now looking to factory-built wooden homes to speed up development and lower costs.

Currently, Spain lags far behind its neighbours, with only 5% of new builds using industrialised methods โ€“ compared to 10% in the UK and 20% in Germany.

But with prices skyrocketing and a chronic shortage of builders, experts say the ‘flat-pack’ model is the only way forward.

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One company leading the charge is Actia, based in Aragon, which is manufacturing buildings in a massive 16,000sqm factory between Huesca and Zaragoza.

Using structural timber, they create building modules that are shipped as ‘flat packs’ to construction sites, much like furniture from the Swedish giant IKEA.

They even ship fully finished 3D bathrooms and kitchens that just need to be slotted into place.

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According to Actia administrator Felipe Vieites, the method cuts construction time by up to 40% and slashes carbon emissions by 60%.

“We have a strong demand to grow because there is a need for housing and a shortage of workers,” Vieites said.

“The best way to address these challenges is by industrialising the entire value chain.”

For buyers, the biggest draw is the price tag.

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While costs vary by location and finish, industry data shows a typical two-bedroom industrialised wood home (approximately 80sqm) costs between โ‚ฌ90,000 and โ‚ฌ120,000 to build.

This is significantly cheaper than traditional brick-and-mortar builds, which often start upwards of โ‚ฌ160,000 for a similar size, not including the land.

Experts estimate the ‘kit’ method is around 30% cheaper overall, largely due to massive savings on labour and reduced waste.

The method uses wood as a ‘star material’, which Actia claims is just as safe as concrete regarding fire risk, despite popular belief.

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It addresses a critical labour shortage in Spain’s construction sector by moving the hard work into a controlled factory environment.

The push is being backed by major banks, including BBVA, which sees the method as essential to modernising Spain’s outdated building sector.

With the Bank of Spain warning of a critical housing shortfall, the pressure is on for developers to abandon traditional bricks and mortar in favour of the faster, greener ‘kit’ approach.

Click here to read more Property News from The Olive Press.

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