Activity increases in the construction sector in Spain

Construction activity in Spain grew again in the second quarter of 2021. According to the Construction Diagnostic Report, jointly with the Royal Institution of Chartered Surveyors (RICS), this is the best production data in the residential sector private. RICS is the international organization that represents real estate professionals, and the General Council of Technical Architecture of Spain (CGATE).

The report reflects the first increase in activity since before the pandemic. This indicates an increase in the Construction Activity Index in Spain, located at +17 in the second quarter in relation to the -11 marked in the first quarter of the year. Compared to the previous year, the increase in activity is even more evident.

As established by the analysis, during 2020 the Spanish construction index reflected -37. In this sense, Spain follows a similar trajectory to the rest of Europe, although it continues behind the global European figures.

The recovery of the construction sector

The sector's activity in the non-residential market is also recovering, although the pace is somewhat slower. In the second quarter of the year there was an activity rate of + 23% compared to -19% in the previous quarter.

For the civil works and infrastructure sector, the results are consistent with a more modest increase (a net balance of + 11%). However, the outlook is much better for the digital and energy sectors (+ 41% and + 44% respectively).

Looking ahead to the coming months, the works portfolio forecasts suggest that the ongoing recovery will continue to gain ground during the second half of this year and until 2022. According to the analysis, the momentum in the three sectors will remain solid. The private residential sector will continue to lead with a net balance of + 46%, followed by the non-residential private sector with a net balance of + 28% and infrastructures with + 19%.

The future of the construction sector in Europe

The forecasts made by the RICS and the CGATE suggest that the sector will play an increasingly important role in most European countries. This is as government programs to rebuild the economy begin to be implemented effectively.

"As in other parts of the world, the industry, unsurprisingly, faces significant challenges, as it seeks to increase activity despite obstacles such as material and labor shortages that anticipate further cost increases" , they point out from RICS. In this context, the expected recovery in profitability is likely to be delayed somewhat more over time.

"The construction sector evolves favorably despite the first effects of the economic recession due to covid-19. Once this circumstance has been overcome, new potholes have emerged that we hope will be overcome during the second semester: the shortage of labor trained and the high cost of raw materials ", says Alfredo Sanz, president of CGATE.