The Future of Construction in Spain to 2015: Austerity Measures and Budget Deficit to Deter Growth27 Sep 2011 • by Natalie Aster
Between 2000 and 2007, the Spanish economy recorded an average annual growth rate of 3.6%, which was attributed to growth in the Spanish construction industry and in particular, the growth of residential housing in the country. However, the growth in the Spanish housing segment was unsustainable and the Spanish housing market and property boom burst in 2007. Following this, the onset of the global financial crisis further exacerbated the problems in Spain’s residential housing market. Consequently, the Spanish economy, entered into a recession and unemployment in Spain rose to 20%. As a result of these developments, the Spanish construction industry recorded a CARC of -2.89% during the review period.
Figure 1: Spanish Overall Construction Industry Dynamics By Market (%), 2006-2015
Note: Bubble size represents 2010 market value (EUR million)
Source: ICD Research Analysis © ICD Research
In 2010, residential construction accounted for 50.7% of the Spanish construction industry. Prior to the global financial crisis, the strong growth in the Spanish housing market had been driven by low interest rates, extended mortgage periods of up to 50 years, favorable tax incentives on mortgage payments as well as house ownership, and the inflow of foreign investment. However, as the housing and property market recorded a downturn, an estimated 1.4 million new houses remained unsold in the country in 2010. Consequently, ICD projects the Spanish residential construction market to achieve a CAGR of 1.97% during the forecast period.
Published: September, 2011
Price: US$ 1,125.00
- Make informed strategic business decisions with strong historic and forecast market sizing data;
- Identify the growth opportunities and industry dynamics within five key industry categories: Commercial Construction, Industrial Construction, Infrastructure Construction, Institutional Construction and Residential Construction;
- Understand the demand dynamics effecting the Spanish construction industry;
- Identify the major companies operating within the Spanish construction industry using the report’s detailed business descriptions, SWOT analysis, news and key personnel information.
More information can be found in the report “The Future of Construction in Spain to 2015: Austerity Measures and Budget Deficit to Deter Growth” by iCD Research.
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