Property construction: one of the growth factors over the Spanish economy
According with the last report of the Instituto de Estudios Económicos (IEE), the property construction is again of the key factors of the economic growth of the Spanish economy. In fact, the growth of investment in total construction (including housing) could reach this year an increase of 3.5%.
There is already a shortage of supply in many regions and cities, which is reflected in the rise in prices both for sale and rent. Regarding investment in other constructions, although it registered a quarter-on-quarter fall between January and March, the trend of growth rate is positive
In addition, the report highlights the evolution of new construction visas, an early indicator of activity, points to an acceleration in the second quarter, while job creation in the sector is accelerating.
The report also emphasizes the impact on other activities, which is fundamental to generate a higher level of employment in the economy as a whole. In their view, most benefited sectors from the building momentum are manufacturing, services and transport, which takes advantages greatly from the reactivation of the construction sector.
The activity in the real estate sector is still far from the levels of 2007 and 2008
However, the activity in the real estate sector is still far from the levels of 2007 and 2008, even thought the improvements in indicators such as the purchase of homes, granting of mortgages or official permits to build new developments. Thus, its current weight in the economy as a whole is around 8%, far away from 15% that the sector represented in the middle of the last decade.