Spanish construction industry predicted to bounce back in 2013

Spain’s IPE – the ‘Instituto de Práctica Empresarial’, or Corporate Practice Institute – has been compiling reports and analyses aimed at helping the real estate sector to plan its future strategies for a good many years now, including the ‘Real Estate Pulsometer’, and its recently published 16^th edition has some welcome predictions.

Namely, that Spain’s stock of unsold properties will be reduced by 23.6% in 2012, equating to 611,250 homes sold nationwide. This leads the IPE to conclude that 2013 will see the start of a much-needed recovery in the construction sector where, they say, current activity has dropped to 20% of the levels recorded in 2007.

The report points out that the key to the rapid absorption of the stock – and the recovery of the construction industry – largely depends on non-resident buyers, and goes on to say that ‘it’s crucial to restore the confidence and legal security in commercial and urban developments, especially among the British, German and Scandinavian markets, by providing the greatest possible transparency in public-private collaboration.’

Other trends highlighted by the report include the fact that with and more cash buyers for Spanish property, only a third of the mortgages contracted in 2006 will be recorded in 2012.