CONTENT:
- Construction activity in Spain in 2021
- Cost of new real estate in Spain
- New real estate offers in Spain
- We will assist you in buying a property in Spain
CONSTRUCTION ACTIVITY IN SPAIN IN 2021
The General Council for Technical Architecture of Spain (CGATE) and the Royal Institute of Chartered Surveyors (RICS), and the international organization of real estate specialists, prepared the second "Diagnostics of Construction" report. It was stated that construction activity in Spain expanded with the best production performances in the residential sector during the second quarter of 2021.
The Spanish construction activity index was +17% in the second quarter of 2021. In the first quarter, the index was around -1%1. An increase in activity is noticed compared to the previous year. The Spanish construction index was at -37% in 2020. Although it is still somewhat behind European rates, Spain follows a similar path as Europe.
The activity of the commercial real estate sector is recovering slowly as well. In the second quarter of this year, an activity index of +23% was recorded compared to -19% in the reviewed quarter.
The activity of the civil construction and the infrastructure sectors is the same, but with a slight increase (+11%). The digital and energy sectors have a shiny new development (+41% and +44% accordingly).
Forecasts suggest a recovery shortly. It will gain momentum in the second half of this year and continue until 2022. High growth is expected in all three sectors; the residential sector will lead (+46%), followed by commercial real estate (+28%) and infrastructure (+19%).
According to Simon Rubinson, the Chief Economist of RICS: “Growing activity in the construction sector continues to increase with the strong real estate market." The interest rates also show that the real estate market will keep its vital role in its economic recovery.
RICS and CGATE assume that infrastructure will have an essential role in most of Europe as governments plan to start programs for economic recovery soon after the pandemic.
The RICS experts explain: “industry is expected to deal with severe problems as in other parts of the world. It aims to increase activity despite material and labor shortages, increasing expenses. The recovery of profitability is likely to expand over time in this context.
Alfredo President Sanz, the president of CGATE, claims: “The construction sector is developing well despite the economic slowdown due to COVID-19. New problems appeared after overcoming these circumstances. It is expected that the shortage of skilled labor and the high cost of raw materials will be a thing of the past in the second half of the year. However, the sector is still bothered due to the uncertainty of our report."
According to the Direct Construction Costs Index, prices increased by more than 10% in just 9 months. Construction costs in September of 2021 increased by 13.5% year-on-year (in 2020, the increase was only 1.7%).
| Type of work | Costs in % |
|---|---|
| Soilwork | ‒ |
| Groundwork | 23,5 |
| Framework | 27,9 |
| Facade | 5,3 |
| Internal walls | 7,5 |
| Waterproofing and roofing | 2,5 |
| Suspended ceilings and veneer | 0,3 |
| Tile and underlayers | 3,3 |
| Woodworking | 18,3 |
| Glazing | 8,9 |
| Painting | 9,5 |
High prices for raw materials such as steel, wood, aluminum, and copper explain the increase in construction costs over the past six months, but labor costs have not yet risen.
The price of steel grew by 35% in nine months. This means that the construction of frames costs 28% more than a year ago. Other significant changes are groundwork (+23.5%), woodworking (+18.3%), painting (+9.5%), and glazing (+8.9%).
COST OF NEW REAL ESTATE IN SPAIN
“In the second quarter of 2021, the average price of new housing in Spain increased by 0.38% year on year and reached 2,482 euros/m2,” says the up-to-date report on the Spanish housing market published by the “Circle of Entrepreneurs” association on September 3rd.
The highest price is 3,992 euros/m2 in Catalonia. It is 3,682 euros/m2 in Madrid, 2,762 euros/m2 in Basque Country and 2,176 euros/m2 in the Balearic Islands.
According to the Global Property Guide web page, Madrid is one of the most expensive European cities (the 13th place), with more than 5,332 euros/m2. Information is based on the housing prices in central areas.
An increase in the price of housing units was recorded in the provincial capitals: Lugo - 8.6%, Cuenca - 8.1%, Toledo - 6.4%, and Palma and Girona - 5.3% each.
For the “Circle of Entrepreneurs” association, this price growth responds to changing buyers’ preferences who look for big homes away from city centers.
The price was also affected by the temporary lack of supply. This was due to the construction freeze and the demand “zeroing” from those who wanted to buy a property during the pandemic but couldn't because of mobility restrictions and uncertainty.
The monetary policy expansion with available mortgages and the fiscal policy development should also be mentioned.
The average financial burden to buy real estate is 7.6 years in Spain.
The “Circle of Entrepreneurs” association report indicates that the purchase volume, sales, and mortgages have recovered in June to pre-pandemic levels. The number of real estate purchases and sales increased by 31.4% in the first half of the year, while it decreased by 23.4% over the same period in 2020.
In the first half of 2021, the number of properties purchased by the Spanish increased by 33.1% after decreasing by 22% compared to last year.
The number of properties purchased by foreigners increased by 11.8% in the first half of 2021 year-on-year compared with decreasing by 27.9% in the first six months of 2020.
The number of visas issued increased by 35.1% compared to 2020.
NEW REAL ESTATE OFFERS IN SPAIN
La Coruña
A Coruña is a city of contrasts, a resort, and a port located in northwest Spain.
New real estate in A Coruña combines quality materials, comfortable rooms, and unique layouts.
The Urbher Nautica building
One of the most popular properties available in the city. This is an exclusive building with exceptional quality, unique design, energy efficiency, sound insulation, and comfort.
The building is close to the city center, near the ocean and Riazor-Orsan square, on the Ronda promenade. It is in front of the Maritime School, not far from the Riazor stadium. The property faces southwest which provides sunshine all day throughout the year. This is the perfect place to live. The price starts from 230,000 euros.
Valladolid
Valladolid is a Castilian-Leonese city. It is a modern city. It has a combination of fascinating cultural sites and mouth-watering gastronomic eating experiences, conveniently located near Madrid. This is close to the most important provincial capital in the country's north - all of this has made Valladolid an attractive Spanish city for living.
Since the pandemic, real estate sales have increased by 97% in the city. This is the highest rate since 2018 and shows the most notable growth among the Spanish cities.
Residential Elyon
The Jamsa Group constructed a new Elyon Residential unit here, consisting of 18 exclusive houses in the city center. This provides an excellent opportunity to purchase a new property in the sought-after historical area.
This residential unit will present the city with a new real estate alternative of quality and comfort.
The modern buildings are designed so that all 18 houses have spacious and bright rooms with everything needed to ensure your quality of life. Storage rooms are for sale in the building and the city center.
This unit will have an "A" energy rating, which provides significant energy savings and aerothermal systems.
Buyers can look forward to a fully equipped and furnished kitchen. The apartments have underfloor heating and high-quality ceramic finishes in the bathrooms and kitchens. The layout creates space and provides for maximum use of natural light.
High-quality lobbies on each floor with modern state-of-the-art lighting systems are energy-efficient and well-designed. The traditional design of existing portals was maintained during construction: a staircase paved with natural stone and an entrance door made with original materials of wood, glass, and steel.
This new offer is not only a buy-to-live option, but with competitive prices (a 2-bedroom apartment costs about 330,000 euros), it is an excellent buy-to-invest option for those who are looking for exclusivity in a Spanish city with significant future potential.
WE WILL HELP YOU TO BUY PROPERTY IN SPAIN
Spain Real Estate offers a wide range of high-quality Spanish properties at attractive prices. Start a new life in Spain in a state-of-the-art quality and comfortable property!