Spanish construction being put on hold?

It is possible, that the number of started constructions in 2009, will be around 150000 ONLY.

Construction in Spain continues its descend. With a decrease of 4,2% in the month of May versus the month of April 2009, Spain is leading the largest monthly descend within the European Community (according to EUROSTAT).

Overall in the Euro Zone, the total production of the construction sector decreased with 2% within the same period.

On an annual basis, this decrease was 8% within the EURO ZONE and 9,6% within the European Community (Euro plus Non-Euro Countries).

Apart from Spain, the largest annual decreases, have been registered in Romania (-23.7%), Slovenia (-21.1%) and in the UK (-17.9%).

During the BOOM Years, 800000 homes were being built on an annual basis in Spain, this was more than the combined construction in France, Germany and The UK.

Today, it would not be logical to continue building, as the large unsold stock is still superseding the small demand.

Therefore there is no other solution than a decrease in selling prices in order to balance offer and demand., while putting construction on hold.


JULY 2009