The construction sector expects a 49% growth in new residential construction in 2022

The construction sector expects a net growth of new residential work of 49% in 2022 and trusts that this trend will be replicated in non-residential building projects by 20%, and civil works by 14%, according to the projections of the ‘Construction diagnostic report for the fourth quarter of the year’, prepared by the General Council of Technical Architecture of Spain (Cgate) and the Royal Institution of Chartered Surveyors (Rics).

The good prospects for the sector are based on the data recorded throughout the last three months of 2021 and, also, on the arrival of European funds in 2022.

The president of Cgate, Alfredo Sanz, hopes that the European aid will also mean “a strong rebound for the rehabilitation sector” and will serve to update and decarbonise the building stock.

Despite the good expectations for the coming months, construction is exposed to a 13% decrease in profit margins. 86% of those surveyed indicated the increase in the cost of construction materials as the main brake on the sector. In fact, prices are expected to rise 8.84%, according to the survey.

Terry Parsons, economist at Rics, for his part, comments that significant challenges around material costs and the availability of skilled labour “could weigh more and more on activity if they continue to worsen”.