The Spanish construction industry is expected to grow marginally by 0.8% in real terms this year, after a sharp decline of 11.3% in 2020. The pace of recovery in 2021 has been curtailed by surging prices for construction materials and energy, while ongoing challenges in containing Coronavirus (COVID-19) infections has hampered the overall rebound in economic activity. According to Eurostat, the value add of the construction industry declined by 8.8% year on year (YoY) in Q3 2021, in a worse outturn than had been predicted. This was preceded by Y-o-Y growth of 11.1% in Q2 and a decline of 11.4% in Q1 2021.
The construction production index for civil engineering works also fell by 7.8% YoY in the first three quarters of 2021, according to the Instituto Nacional de Estadistica (INE). For the rest of 2021 and early 2022, construction activity is expected to remain weak, as the Bank of Spain forecasted supply bottlenecks, with inflation and energy prices to continue to remain at an all-time high.
Supply bottlenecks and high prices will continue be a concern for the industry heading into 2022, but construction output is expected to recover in 2022, supported by the government’s emergency measures to reduce high energy bills and the disbursements under the Next Generation EU (NGEU) Recovery Fund, under which the government plans to spend EUR27.6 billion (US$33.6 billion) in 2022. In the draft budget 2022, including the EU recovery fund, the government is planning to invest EUR2.8 billion (US$3.4 billion) to create energy efficient buildings in 2022. In October 2021, the ministry of finance announced the draft budget for the fiscal year (FY) 2022, which involves a spending package worth EUR242 billion (US$264.1 billion) in 2022, marking a marginal increase of 0.2% compared to last year. The package includes the EU recovery fund, which almost tripled from 2021. The government also plans to cut the deficit to 5% of GDP in 2022, from a projected 8.4% in 2021 and to 4% in 2023. The government's focus on producing 70% of its electricity from renewable energy sources by 2030 and the ‘Sustainable Tourism Strategy of Spain 2030’ will also support the forecast-period growth.
The publisher’s Construction in Spain - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information and insights into the Spanish construction industry, including:
The construction production index for civil engineering works also fell by 7.8% YoY in the first three quarters of 2021, according to the Instituto Nacional de Estadistica (INE). For the rest of 2021 and early 2022, construction activity is expected to remain weak, as the Bank of Spain forecasted supply bottlenecks, with inflation and energy prices to continue to remain at an all-time high.
Supply bottlenecks and high prices will continue be a concern for the industry heading into 2022, but construction output is expected to recover in 2022, supported by the government’s emergency measures to reduce high energy bills and the disbursements under the Next Generation EU (NGEU) Recovery Fund, under which the government plans to spend EUR27.6 billion (US$33.6 billion) in 2022. In the draft budget 2022, including the EU recovery fund, the government is planning to invest EUR2.8 billion (US$3.4 billion) to create energy efficient buildings in 2022. In October 2021, the ministry of finance announced the draft budget for the fiscal year (FY) 2022, which involves a spending package worth EUR242 billion (US$264.1 billion) in 2022, marking a marginal increase of 0.2% compared to last year. The package includes the EU recovery fund, which almost tripled from 2021. The government also plans to cut the deficit to 5% of GDP in 2022, from a projected 8.4% in 2021 and to 4% in 2023. The government's focus on producing 70% of its electricity from renewable energy sources by 2030 and the ‘Sustainable Tourism Strategy of Spain 2030’ will also support the forecast-period growth.
The publisher’s Construction in Spain - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information and insights into the Spanish construction industry, including:
- The Spanish construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Spanish construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Spain. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Spain, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
