Market Research Report
Construction in Spain - Key Trends and Opportunities to 2024
|Published by||GlobalData||Product code||967518|
|Published||Content info||48 Pages
Delivery time: 1-2 business days
|Construction in Spain - Key Trends and Opportunities to 2024|
|Published: December 22, 2020||Content info: 48 Pages||
The Spanish construction industry grew by 4.3% in real terms in 2019 - marginally up from a growth rate of 4.1% in 2018; this was supported by investments on residential and commercial construction projects. Prior to the outbreak of Coronavirus (COVID-19), the industry was expected to grow by 1.6% in 2020. However, construction activities were disrupted due to the stringent measures taken by the government to contain the spread of pandemic, notably strict lockdowns, and travel restrictions from other countries. According to Eurostat, the construction industry's value-add fell by 15.2% year on year (Y-o-Y) in the first three quarters of 2020. In the final quarter of the year, the industry will be further affected by the second wave of COVID-19 infections, which led to the reintroduction of some containment measures in the country from mid-October 2020. Overall, in 2020, investment in new construction projects will also be limited by the re-allocation of government resources to address the current crisis. As a result, GlobalData now expects construction output to contract by 12.9% in real terms this year.
Assuming there are no repeats of restrictions on construction activity in 2021, the industry is projected to rebound with a growth rate of 7.4% in 2021 and register an annual average growth rate of 1.7% between 2022-2024. This will be supported by the government's focus on reviving the economy, coupled with investments on infrastructure, residential and renewable energy projects. In October 2020, the government approved the 2021 draft budget, which involves a spending package worth EUR239.8 billion (US$264.1 billion) in 2021 - marking an increase of more than 10% compared to last year; the budget includes almost EUR9 billion (US$9.9 billion) in EU funds. Of the total 2021 budget, the government allocated EUR11.5 billion (US$12.7 billion) towards infrastructure spending.
Growth in the forecast period will also be driven by the government's focus on producing 70% of its electricity from renewable energy sources by 2030. The plan is expected to require an investment of EUR200 billion (US$220.3 billion) over the next decade, with 23.5% of the total investments coming from the public sector. In another positive development, the government has announced a plan to auction 19.4GW of renewable energy capacity by 2025.
Although it is recovering from the sharp contraction in 2020, the construction industry's output value will not return to 2019 levels by 2024, reflecting the wider impact of COVID-19 on the economy and investment.
This report provides detailed market analysis, information, and insights into the Spanish construction industry, including -
This report provides a comprehensive analysis of the construction industry in Spain. It provides -