We evaluate the performance of two real-time earthquake location algorithms, <em>RTLoc</em> and <em>MParLoc</em>, implemented in the Earthquake Early Warning System (EEWS) <em>QuakeUp</em>. Specifically, we assess whether the recently developed <em>MParLoc</em> algorithm—which incorporates P-wave arrival times, P-peak amplitude ratios, and back-azimuth estimates—improves earthquake localization accuracy in the Ibero-Maghrebian Region (IMR). Analyzing M<sub>w</sub> ≥ 4 earthquakes recorded in the IMR between 2011 and 2026, we find that <em>MParLoc</em> generally outperforms <em>RTLoc</em>. It yields hypocentral locations significantly closer to reference solutions, particularly during the earliest stages after earthquake detection, when only a few stations and short P-wave windows are available. Although both methods converge as more P-wave picks accumulate, <em>MParLoc</em>’s early-stage precision is critical. Hypocentral accuracy strongly influences the distance term in the ground motion prediction equations used to generate real-time shakemaps, which define the spatial distribution of expected ground shaking and delineate Potential Damage Zones (PDZs). The results indicate that implementing <em>MParLoc</em> in PDZ-based EEWS like <em>QuakeUp</em> would significantly improve warning performance in the IMR, especially during the initial stages of an earthquake, by reducing the time to first alert, increasing lead-time for emergency safety actions, and providing valuable scientific and operational information for emergency response.