27 August 2015 – Cinco Días
The real estate industry recovers almost 120,000 job positions
The sector most affected by the crisis, and the one that partly was its cause, is recovering. Construction, among other sectors, is responsible for the improvement in employment in recent months. The industry is creating new jobs and businesses: last year saw the biggest growth in the past five years with 6,634 new real estate companies and has recovered about 120,000 jobs, mostly related to public work, according to the National Statistics Institute (Instituto Nacional de Estadística, INE).
The rest of employment comes from housing construction, more related to the private enterprise.
According to an analysis by Infoempresa.com on entrepreneurship in Spanish real estate sector in the 2011-2014 period, it represented 3% of all new companies in 2014, with a total subscribed capital exceeding 1,200 million euros (on average 453,000 euros per company), second only to the Energy sector.
Madrid is first in the ranking of new companies dedicated to real estate activities with 1,428 in 2014, representing 21.5% of the total. Barcelona is second with 868 new firms (13.1%), followed by Malaga with 619 (9.3%), Alicante with 409 (6.2%) and Valencia with 351 (5.3%).
In all, between 2011 and 2014, 26 Spanish provinces have recorded an increase of companies engaged in the real estate business.
In the same period, the number of new registered enterprises grew up to 23.9%. Specifically, 5,354 were created in 2011, while in 2014 the number was 6,634. In recent years, the sector’s growth consolidated and 2014 saw a clear boost, with an increase of 10.9% compared to 2013, according to the study of Infoempresa.com.
Among the new companies engaged in real estate stand out limited partnerships, which have grown by 24.3% since 2011, while corporations have grown by 15.5%.
However, these figures are still far from the levels of 2008, when more than 10,000 new businesses entered the market. In the case of the main provinces with more weight in the sector, the comparison clearly shows that the activity of 2008 has not been regained.
On the other hand, according to a study by Antal, a company specializing in search and recruitment of staff, when it comes to job creation in Spain the consumer sector is seen among the first, as it has reached a hiring rate of 59% in the last quarter, surpassing the previous quarter by 28 points. Furthermore, this trend is expected to continue over the coming months, up to an increase of 63% in the number of contracts.
Experts agree that the prospects are very positive. “The macroeconomic data indicate that the Spanish economy will be one of the most advancing within the euro zone and this improvement is also expected to positively impact the consumer sector,” notes the study.
Original story: Cinco Días
Translation: Lee La