Gloomy forecast for building industry next year

6th March 2007, Comments 0 comments

6 March 2007, MADRID – Spain’s major building association Seopan forecasted on Tuesday a slowdown in the construction sector in 2007 compared with the year before.

6 March 2007

MADRID – Spain’s major building association Seopan forecasted on Tuesday a slowdown in the construction sector in 2007 compared with the year before.

It said this year would see growth of between 4-5 percent, which represented a deceleration compared with 2006, when production went up six percent.

The number of homes constructed will rise by five to six percent, compared with 8.5 percent in 2006, Seopan analysts claimed.

It even went as far as to suggest the number of homes built in 2008 would fall from 2007.

If the number of homes built goes down by 100,000 this will mean a cut in about 200,000 jobs, according to Seopan president, Enrique de Aldama.

He said the fall in demand produced by the rise in house prices is the cause of this set-back in the industry.

“What we now sell in two days, we will take two months to sell,” he said.

This implies a ‘major risk’ for developers, claimed Aldama.

[Copyright EFE with Expatica]

Subject: Spanish news

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