Growth forecast for Spain

By Sandy Guthrie11 June 2015

After seven years of contraction, construction in Spain is expected to pick up again in 2015, according to research company Timetric’s Construction Intelligence Center (CIC).

It said that in real terms, the industry’s output value was forecast to rise at a compound annual growth rate (CAGR) of 2.72% over the next five years, which it said was in sharp contrast to the 7.1% decline recorded during the review period of 2010 to 2014.

Consequently, it forecast the Spanish construction industry would rise from US$209.7 billion (€186.87 billion) in 2014 to US$239.8 billion (€213.70 billion) in 2019.

Timetric said the industry was expected to improve as a result of economic recovery, foreign investments and the return of business confidence.

Residential construction was the largest market in the Spanish construction industry during the review period, it found.

Sina Zavertha, economist at Timetric’s CIC, said, “The Spanish housing market is on a path to recovery, as evidenced by 0.2% increase in house prices in nominal terms in the fourth quarter of 2014 compared to the previous quarter of the same year.”

She added that the residential construction market was expected to flourish over the forecast period, as foreign investors looked to purchase both new and second-hand properties.

Infrastructure construction was found to be the second-largest market in the industry.

Timetric said that although transport infrastructure in Spain was highly developed, the government was keen to continue a process of modernisation and expansion by increasing investment spending in the 2015. The market is therefore projected to grow over the forecast period, supported by government focus on rail and road infrastructure.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
Toyota launches new reach trucks
New low emissions reach truck models from Toyota offer safety improvements 
How to improve sustainable practices in rental
Appleton Column: When it comes to sustainability in the equipment rental sector, Kevin Appleton says businesses should stop the virtue-signalling and look for meaningful actions
Zeppelin Rental completes Luther integration
Move strengthen’s Zeppelin’s position in technology for traffic telematics
CONNECT WITH THE TEAM
Murray Pollok Managing Editor Tel: +44(0)1505 850 043 E-mail: murray.pollok@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA