CEOE considers that 150,000 homes per year should be constructed in Spain
CEOE (Confederación Española de Organizaciones Empresariales) have declared recently that the stock of properties not sold in Spain is not a problem any more. This amount is estimated between 300,000 and 500,000 and according CEOE it doesn’t represent a barrier to start again the construction of new-built homes. In fact, 150,000 new homes per year is the number that this professional organization considers the optimum. This will also create around 500,000 new jobs.
The conclusions of the CEOE are included in its report El sector inmobiliario: propuestas para la recuperación (Real estate sector: proposals for recovery), presented this week. Nevertheless, the report highlights that the number of 150,000 new homes a year only can be assumed by the market if young people in Spain can afford a property.
CEOE talks in its report about two big measures to make this possible, which it is not so easy considering that despite the technical end of the recession, the truth is that the economic capability of most of the population in Spain (including especially young people) is very low. These two aspects mentioned are the assistance of the Government by a tax reduction and low property prices thanks to new a cheaper construction techniques. The second can be achievable, however the pressure of the EU over the Spanish Governments in terms of public savings to achieve a reduction on public deficit makes quite difficult the application of the second key factor in the equation designed by CEOE.
The professional association also points the need to improve the agility on administrative process in relation to the permits of new constructions, as well as an easier access by young people to subsidized housing.