Spanish property new builds down 43% on last year

Barcelona real estate Blog

Tuesday, 05 October 2010 08:59

The number of new housing projects being started in Spain is down 43% compared to the previous 12 months, with 72,491 new houses started. Before the economic crisis, Spain was constructing 300-400 thousand new houses a year to replace old houses and cope with demand for new houses, so this is quite a bit under that figure. It seems the new build market it still contracting, which is good news in the long term as it means that supply is adjusting to meet demand, as there is currently a large oversupply of new houses in Spain. As this happens, it will mean more new builds will start to happen, but at a more sensible rate, creating a more stable, balanced housing market.

In the short term, it means more unemployment in the construction sector. Barcelona real estate Holiday apartments Barcelona