News - construction stability

Spanish property construction is approaching stability

Spanish property construction markets will finish the year of 2006 with an increase of 5.8%, slightly superior to the one of 2005 and obviously very substantial”, according to Mr. Fontana, the Unit of Economic Prospectiva of the ITeC.

The activity of the residential construction in Spain will be reduced by 2.5% in 2008, which supposes the first reduction of the sector after 12 years of uninterrupted growth, according to the data of Euroconstruct. In this way, the deceleration of the sector is “postponed” to 2008, but it continues being “inevitable”, since “the bonanza cannot extend by always”. Thus, the growth that will register 2007 will not fall noticeably.

Nevertheless, Fontana explained that “the Spanish situation has a certain parallelism with the European”, where 2006 also has been “a good” year whereas the production will begin to decrease in the next years. Fontana also declared that there are no “serious consequences” for the Spanish economy that can entail the stagnation of the property construction, since the experience of other countries, like the United Kingdom, demonstrates that “the life is possible beyond the boom”.