Construction in Spain - Key Trends and Opportunities to 2025 (Q4 2021)

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 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.

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
7.4 The Publisher Construction

List of Tables

Table 1: Construction Industry Key Data
Table 2: Spain, Key Economic Indicators
Table 3: Spain, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Spain, Top Commercial Construction Projects by Value
Table 5: Spain, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Spain, Top Industrial Construction Projects by Value
Table 7: Spain, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Spain, Top Infrastructure Construction Projects by Value
Table 9: Spain, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Spain, Top Energy and Utilities Construction Projects by Value
Table 11: Spain, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Spain, Top Institutional Construction Projects by Value
Table 13: Spain, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: Spain, Top Residential Construction Projects by Value
Table 15: Spain, Key Contractors
Table 16: Spain, Key Consultants
Table 17: Spain, Construction Output Value (Real, US$ Million)
Table 18: Spain, Construction Output Value (Nominal, EUR Million)
Table 19: The Publisher Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Western Europe, Construction Output (Real % Change), 2021
Figure 2: Spain, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Spain, COVID-19 Confirmed Cases
Figure 4: Spain, Risk Summary
Figure 5: Spain, Risk Regional Comparison
Figure 6: Spain, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Spain, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Spain, Construction Value Add (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY
Figure 9: Spain, Construction Production Index, 2015=100, % Change YoY
Figure 10: Spain, Gross Fixed Capital Formation in Construction Sector, 2015 Chain Linked Volume Measures, % Change YoY
Figure 11: Spain, Employment in the Construction Industry, in Thousands
Figure 12: Spain, Construction Projects Momentum Index
Figure 13: Western Europe, Construction Projects Momentum Index
Figure 14: Spain, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 15: Spain, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 16: Spain, International Tourist Arrivals (in Thousands) and Spending by International Tourists (In EUR Million)
Figure 17: Spain, Employment in the Hospitality Sector, in Thousands
Figure 18: Spain, Retail Turnover Index, Constant Prices, 2015=100, % Change YoY
Figure 19: Spain, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 20: Spain, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 21: Spain, Manufacturing Value Add (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY
Figure 22: Spain, Exports of Goods and Services, in Current Prices, EUR Billion, % Change YoY
Figure 23: Spain, Industrial Production Index, 2015=100, % Change YoY
Figure 24: Spain, Vehicle Production and Exports, In Thousands
Figure 25: Spain, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 26: Spain, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 27: Spain, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 28: Spain, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Spain, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: Spain, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Spain, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 32: Spain, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 33: Spain, Value Add of Real Estate Activities (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY
Figure 34: Spain, Gross Fixed Capital Formation on Dwellings (EUR Billion, 2015 Chain Linked Volume Prices), % Change YoY
Figure 35: Spain, Housing Price Index (IPV), 2015=100, % Change YoY
Figure 36: Spain, Housing Sales, in Thousands
Figure 37: Spain, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 38: Spain, Headquarters of Key Consultants (% of Total Project Pipeline)