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 real estate sector regained dynamism in 2024. Sales grew in much of the country, driven by a more favorable economic environment. However, the new supply remained insufficient to meet demand. The performance of the sector will be conditioned by several factors.

BBVA Research presents its new real estate sector report in two presentations: the first analyzes sales, supply, prices, rentals, and demographics; the second focuses on the structure of construction, financing, and sustainability. It includes sales projections, drivers, and trends through 2026.

Construction GDP grew 2.6% thanks to a 6.9% increase in building construction, despite the decline in other subsectors. The mortgage market increased its number of loans by 10.7%, primarily due to the recovery of affordable housing.

The change of cycle expected by the sector was confirmed. The repeal of the Rent Law, the resurgence of loans, a greater control of inflation and recovering real wages augur a further expansion of the real estate market.

The accumulated Construction GDP grows 10.1% in the second quarter of 2024, with increases in all subsectors. In a change of trend, the mortgage market is now increasing 2.2% in real amount and is set to continue advancing

Wealth stagnation may be influencing consumption and investment decisions. The recovery of prices in the real estate sector will help to improve the trend. However, the concentration of wealth in housing has negative externalities.

Falling interest rates, the gradual recovery in the eurozone and a more positive demographic outlook are expected to boost residential demand, which in a context of relatively limited housing production will lead to house price growth in the current biennium.