Housing Hit the Bottom But Won´t Speed Up Before 2016

10/03/2014 – El Economista

The activity of housing development and construction has oficially reached the rock bottom level, as association of construction companies Seopan says. Yet the sector “will not reach the cruising speed before 2016”.

What is more, the association remarks that the subsector stabilized and the number of new houses start-ups will remain “similar” or be even “a little bit higher” this year. (…).

As Julián Núñez, chairman of Seopan, claims, the entire construction sector will lose between 4% and 6% throughout the year 2014, closing the seventh consecutive year of adjustments.

Large-scale infrastructure development will play the leading role in the upcoming years (for this year between 14% and 16% growth is foreseen) due to limited public work investment.

When it comes to the building development sector, the slump will screech to a margin of between 4% and 6%. In turn, refurbishment and maintenance field will score similarly to the previous year.

In terms of employment and contribution to economic growth, unfortunately the sector will continue to hobble them at least till 2016. “Unless private investment upsurges”. (…). According to the data, the construction sector will add 0.6 point to GDP and will cancel 75.000 job positions.

At that point, the chairman of Seopan noticed that large international construction companies earned 71.6% of their revenues outside of Spain (€54.652 million) that is by 5.5% more than in 2012.

Talking about the situation within the country, the domestic market lost 13.6% last year (€21.630 million), that is by 28.4% of total.

The whole backlog of works pending execution represents €86.171 million in building projects, out of which 81.9% (€70.547 million) corresponds to international contracts.

Within the student-exchange ‘Plan Bolonia’, many young Spanish engineeers leave the country and by so decrease Spain´s internal competitiveness. (…).



Original article: El Economista

Translation: AURA REE