New construction falls 35%

construction in spain
Many constructions remain unfinished

In the first nine months of 2011 there were 127,207 newly constructed properties in Spain, representing a decrease of 35.2% over the same period last year (196,492), according to the Ministry of Development.

Of all the properties completed between January and September, 98% (124,731) were constructed by private developers and 2% (2,476) were government projects. With respect to the same months of 2010 construction by private developers dropped 35%, while publicly funded construction fell by 44.7%.

Among the private sector, corporations accounted for 86,259 properties showing a decrease of 41.6%, while private construction and communities accounted for 28,126 (-16.8%), and 6,154 (-6.4%) from cooperatives. The remaining 4,192 consists of other types of private development.

Meanwhile, the value of completed properties fell by 31.6% to 12,185.6 million euros. The finished house prices continue to follow the downward trend of recent years. In the whole of 2010 total constructions amounted to 257,443 which showed a 33% decrease from 2009.

Spain has now seen three consecutive years of falling prices. Since the peak recorded in 2007, when 641,419 new apartments were completed, the market has fallen by 60%.