The construction of housing in Spain was almost completely paralyzed after the crisis, registering a historical minimum of new construction visas in 2013 with 34,288 units. This figure meant a fall of 96% compared to the maximum reached in 2006 with 865,561 visas. As of 2014, the trend changed and the activity of the promoter sector has been rebounding to be at levels of 100,000 homes started per year.
In the process of recovery and after seeing the consequences of the excesses that were undertaken in the past, a question arises. Are many or few homes being built in Spain?
“This production is still below the optimum level of balance that experts put in 120,000 new homes annually to respond to the demand of a country like Spain. Everything indicates that 2019 will close at about 110,000 visas, so the sector still has growth path, “explains David Martínez, CEO of Aedas Homes.
“Of the total sales and purchases, the new construction represents between 12 and 15%. This is an atypical figure with respect to the data we had in the previous expansionary cycle, since at the time of the boom the volume of new construction floors Transaction was much higher than it is now, “says Samuel Population, National Director of Residential and Land at CBRE.
“The barrier for the new work is not the demand, which is very active, at the moment the limitations are of productive capacity both at a technical and labor level. There are no construction companies or trades that can develop that activity to a greater pace, “says Population.
The destruction of the productive fabric in the construction sector during the crisis has meant a reduction in the ability to generate new housing. In fact, the employment level of this industry is still 54% below the maximum reached in 2007.
Streamline processes
“Spain has a very heterogeneous market with areas where the supply of new housing is still insufficient. That shortage of supply is what pressures up prices, as the demand is higher,” explains Martínez, who emphasizes that “there is a demand contrasted for good projects, in good areas and with housing at market prices. Above all, replacement buyers looking for a home that best suits their current needs. “
In the same vein, Marcos Beltrán, commercial director of Real Estate de Altamira, points out that “in housing of first residence or for investment for rent and in certain locations such as Madrid, Barcelona or Valencian Community there is still unmet demand, although the evolution of prices in these locations is approaching supply and demand. “
“The streamlining of administrative processes is one of the great challenges facing the sector in order to boost the construction of new homes. We have to gain efficiency throughout the process, from land management to consolidation as suitable land for the building and the granting of building licenses “, the manager emphasizes. Likewise, Population believes that it is necessary to “continue betting on industrialization to reduce deadlines by half and attract more labor.”
