OREANDA-NEWS. RnR Market Research Offers Report by Research on Construction in Spain - Key Trends and Opportunities to 2020

Synopsis

Construction activity in Spain shrank during the review period (2011-2015), reflecting weak business confidence, consumer demand and depressed economic conditions. Poor investor confidence reduced infrastructure construction activities during the review period.

Spain's construction industry has been greatly damaged by the country's economic crisis, but it showed signs of recovery in early 2015. Consequently, the country's construction industry registered a growth rate of 4.4% in real terms in 2015, following an average annual decline of 9.7% during the preceding four years. Recovery in the general economy, foreign investors' interest and business confidence contributed to the recovery.

The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 3.42% over the forecast period (2016-2020), up from -5.71% during the review period.

The industry's growth over the forecast period is expected to be supported by the government's flagship programs, such as the Golden Visa scheme, Infrastructure and Transport Plan (PEIT) 2005-2020, and the National Renewable Energy Action Plan 2011-2020.

Summary

Timetric's Construction in Spain - Key Trends and Opportunities to 2020 report provides detailed market analysis, information and insights into Spanish construction industry including:

    Spanish construction industry's growth prospects by market, project type and construction activity
    Analysis of equipment, material and service costs for each project type in Spain
    Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in Spanish construction industry
    Profiles of the leading operators in Spanish construction industry
    Data highlights of the largest construction projects in Spain


Scope

This report provides a comprehensive analysis of the construction industry in Spain. It provides:

    Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in Spain using construction output and value-add methods
    Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
    Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
    Analysis of key construction industry issues, including regulation, cost management, funding and pricing
    Detailed profiles of the leading construction companies in Spain


Reasons To Buy

    Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
    Assess market growth potential at a micro-level with over 600 time-series data forecasts.
    Understand the latest industry and market trends.
    Formulate and validate strategy using Timetric's critical and actionable insight.
    Assess business risks, including cost, regulatory and competitive pressures.
    Evaluate competitive risk and success factors.


Key Highlights

    To support the country's construction industry post-economic crisis, the government launched the Golden Visa scheme in 2013. Under this scheme, foreign citizens are allowed to purchase residential permits by investing EUR500,000 (US$555,378) or more into the Spanish property sector. This is expected to encourage foreign buyers from around the world to invest in the Spanish property market.
    Investors can also obtain a short-term visa for a period of six months under the new Golden Visa scheme by presenting proof of funds and a deposit contract in a Spanish bank account, which will in turn enable them to travel more flexibly during the on-going purchase process. This is expected to accelerate the frequency of foreign visits to the country, which will in turn bode well for commercial construction, owing to the demand for a higher number of leisure and hospitality buildings and retail buildings.
    With the aim of improving the country's transport infrastructure, the government is planning to allocate EUR10.1 billion (US$11.2 billion) in the 2016 draft budget. The Spanish Ministry of Development launched a Strategic PEIT 2005-2020 to develop the country's rail infrastructure. Under the PEIT, the government is planning to add 9,656km of railway lines by 2020. Accordingly, it will allocate EUR5.5 billion (US$6.1 billion) of the total transport budget in 2016, to upgrade rail infrastructure. Of this total, EUR3.7 billion (US$4.1 billion) will be spent on the development of high-speed rail networks.
    The new renewable energy auctions system introduced by the government in 2015 is expected to boost various investments into the country's renewable energy sector. In January 2016, the government auctioned 500MW of wind power capacity, and is further planning to auction 5,900MW of wind power during the year to achieve its energy targets until 2020. It also seeks to install an additional 8.5GW of renewable energy capacity during 2015-2020. These new installations are expected to raise the total renewable energy capacity of the country from 48GW in 2015 to about 57GW in 2020.
    Over the forecast period, the institutional construction market is expected to be driven by the government's efforts to promote the healthcare and educational sectors through increased budget allocations. According to the 2016 draft budget, the government is planning to allocate EUR2.5 billion (US$2.8 billion) to the education sector, which represents a 9.3% increase as compared to 2015's budget allocation. The health, social services and equality sector is expected to receive EUR2.0 billion (US$2.2 billion), which represents an increase of 5.3% when compared to 2015.