Publications

The construction sector continues to face staff shortages, an aging workforce, and low education levels, which hinder its development. However, since 2022, the arrival of foreign workers may be starting to ease the situation. Improving training would help boost productivity.

The fact that there is not enough affordable housing in Spain right now is not up for debate. However, as last week’s proposals show, not everyone agrees on the solution.

Since 2021 housing starts have been lower than homes created. Factors that could limit housing supply include a shortage of land ready to start new developments, regulatory uncertainty and labor shortages. Measures are needed to boost residential construction and rental supply.

Inflation continues to fall, but rents are acting as a silent enemy, putting upward pressure on the basket of services, with monthly variations reaching 15-year highs. What is behind these rises and how long will they last?

The residential market is in a process of adjusting sales due to rising interest rates and the slowdown in neighboring economies, yet the level of sales remains relatively high. Nevertheless, housing prices continue to grow as a result of the shortage of supply.

Housing demand will be restricted by the increase in interest rates and new housing production will remain at similar levels to 2019. Unlike in other countries, there are no price imbalances and the moderation in growth will come mainly from used housing.

Housing sales will slow in 2023 due to slower economic growth, rising interest rates and a reduction in savings accumulated in the pandemic. The shortage of supply will make the contraction of permits less intense and the price will remain stagnant. In 2024, growth will return to the sector

Real estate market is starting to feel the economic slowdown and the rise in interest rates. This context justifies a contraction in sales in 2023, despite which the level will remain high. Housing starts will stagnate in 2023 and the nominal price will grow by around 2%.