6 October 2016 – Expansión
Yesterday, the Chairman of the property developers association APCE, Juan Antonio Gómez-Pintado, opened the association’s National Conference with moderate optimism. “We have not recovered completely”, he said, but he highlighted that his forecasts point to “a 15% increase in house construction” in 2016, “with signs of continued increases in 2017 and 2018”.
Gómez-Pintado highlighted that the major problem in the sector is the large latent demand for housing from young people who find themselves dissatisfied. For this reason, he asked the public administrations “to address” this debate. We need “stability regardless of whoever is in Government”, he said. He also urged property developers to “reduce production costs by focusing on innovation”.
“We face a significant challenge, to facilitate access to housing for young people (…). If not, the current improvement will be a new mirage”, added the Chairman of the association of property developers.
The Secretary of State for Finance, Miguel Ferre, did not take the hint and refused to discuss the possibility of any incentive plans for the sector. In his opinion, the fact that VAT has not been increased for property renovations and that a very favourable fiscal framework has been created for the Socimis are “measures that already carry weight” in the residential sector.
Ferre highlighted that the Socimis – listed real estate investment vehicles – already hold more than €9,300 million in assets and have a stock market value of more than €5,000 million. “It is one of the things that this minister is most proud of”, he said, referring to Cristóbal Montoro, who he stood in for at the conference. There are currently 30 Socimis in Spain, and 25 of them are listed on the Alternative Investment Market (MAB).
On the other hand, Ferre emphasised that, thanks to the fact that work to repair and renovate homes still carries a reduced VAT levy, of 10%, means that “the turnover of repair and renovation companies has increased by 13%”. The European Commission has mobilised €4,200 million of investment for potential low-carbon economy projects and “those funds should be redirected to building sustainability”, he added. (…).
Original story: Expansión (by Juanma Lamet)
Translation: Carmel Drake