Almost a quarter of new companies registered in Spain are in real estate or construction

Spain’s construction and real estate sectors are vital for the country’s growing economy.

One of the chief fears facing the real estate industry in Spain has been, at least for the past year or so, a return to an underserviced property market, which is why the news that 23% of new companies registered in Spain this year will operate in the construction and real estate sectors is very welcome indeed…

After all, these industries have been among the success stories of a resurgent Spanish economy, and so it is only inevitable that those of an entrepreneurial bent will be attracted to the sectors. However, if Spain’s property industry has learned one thing from the boom-bust of a decade ago, it is the importance of transparency, due diligence and an embrace of sober realities.

The data from Gedesco – which shows that between January 1 and March 31 this year 5,987 of the 26,258 new companies formed were in the real estate and construction sectors – paints only half of the picture.

Last year over the same period a similar number of real estate and construction companies were formed (indeed, this year the increase is only 1.7%) and Spain’s property industry has just gone through its most encouraging 12 months for more than a decade.

What the data does reveal is that the Spanish property sector is carefully reinvesting and the new companies emerging are filling the spaces vacated by the 1,319 real estate firms that were wound down over the same period.