The lack of new construction has become a concern to real estate developers. In addition, it can also lead to a hurdle to the recovering of building works in our country. This is an understandable concern as construction has been one of the sectors which has recovered best after the irruption of the coronavirus. Thus, it is very important for this sector to keep on the straight path. One year ago, we wrote an article in this blog about good times for new housing in Spain and we said that more and more new construction was being sold creating a trend in the real estate market. Today, due to the pandemic, permits for the construction of new housing have been very much reduced (this last March they dropped nearly 37%) and this worries the building sector because many jobs can be lost. It is important to point out that during the state of alarm new construction works were carried out, except during the days of greater confinement. In general, we can say that, until now, the building sector has survived the coronavirus. Nevertheless, it is fundamental that this inertia is not held back in the coming months so that new construction can play a decisive role.

MODERATE OPTIMISM AND CERTAIN DOUBTS

The facts and figures referring to the number of workers in the construction sector of our country during September 2020, do not show any significant difference with regard to those of 2019. This month there are 861.647 people affiliated to the National Health Service (1% less than in 2019). However, if we take a look at the self-employed workers affiliated to the National Health Service (389.438), we find an increase of 0,5%. If to this we add that 9 out of 10 workers in the construction sector were made redundant during the pandemic but have, once again, returned to work, we can see that there are reasons to be moderately optimistic. We must take into account that the building works which started before the pandemic have not been stopped and, in spite of the coronavirus, they have gone ahead. This circumstance has been the key to preventing the sector from coming to a sudden and important halt. As we have already said, there are growing fears regarding the new construction works which were scheduled for a later stage and which, because of the pandemic, may not be carried out. We can state that, at the present time, this activity functions well, whereas construction in the future raises doubts. This health crisis has created a lot of uncertainty throughout the world and it has also affected construction works. Even though the current facts and figures are not bad, as we have already seen, the greatest concern is the decrease in the number of building works registered this summer.

IMPORTANT INJECTION OF FUNDS

The 140.000 million euros that Spain will receive from the European Economic Recovery Funds will undoubtedly be an important oxygen ball for the construction sector. Of this amount, 72.700 millions will be allocated to direct aid and the rest to credits. This oxygen ball of funds will be an important help but should be accompanied by more measures to boost new construction works. According to some experts, these measures should be connected with enhancing sustainability and technological development which will allow the creation of new construction projects. In addition, it should also encourage policies to promote the accessibility of young people to purchase a home.