ARCHIVED - Ukraine invasion halts housing construction in Alicante
ARCHIVED ARTICLE
The sector warns price hikes affecting materials and deliveries have "paralysed" new builds in Alicante province
Shortages and knee-jerk price hikes affecting building materials and deliveries following Russia's invasion of Ukraine have halted new developments in Alicante province, according to sector sources.
Employers' association, Provía, has warned that "price rises out of fear" have brought new constructions to a standstill, and the situation is unlikely to improve for some time "if the conflict continues".
Association secretary general, Jesualdo Ros, explained: "In spite of the pandemic, 2021 was a good year for the sector, as were the first two months of this year. Construction was one of the areas least affected by the health crisis. The optimistic forecasts for this year depend on the war ending as soon as possible so that we can return to normality without the situation getting more out of control."
However, the union maintains that whatever happens over the coming weeks "in a few months we can expect surprises in prices".
"We forecast a rise in the cost of housing due to a significant reduction in the current stock as no new developments are being carried out."
According to the employers' association, there is still a large demand pending the pandemic, which is what is sustaining the growth of the sector.
Moreover, whilst the interest of Russian clients has almost completely disappeared and that of the Polish market has diminished, an increase in the demand for commercial real estate from Finland, Sweden, Norway and France is on the rise.
"The problem is that this stock is not infinite and it is important that the administrations facilitate the construction of new developments so that there are no major mismatches between supply and demand that could lead to a spike in prices."
As far as the profile of buyers is concerned, the highest demand is for second homes, both from foreign and national clients and that "the sale of properties destined for permanent residence has been completely stagnant for some time now".
According to the experts, the future of the sector – one of the main economic engines in the province and in Spain as a whole – now depends to a large extent on how the conflict in Eastern Europe develop, and it's hoped "the economic consequences do not last for too long".
To be listed on the CAMPOSOL TODAY MAP please call +34 968 018 268.
To be listed on the CONDADO TODAY MAP please call +34 968 018 268.
Guidelines for submitting articles to Camposol Today
Hello, and thank you for choosing CamposolToday.com to publicise your organisation’s info or event.
Camposol Today is a website set up by Murcia Today specifically for residents of the urbanisation in Southwest Murcia, providing news and information on what’s happening in the local area, which is the largest English-speaking expat area in the Region of Murcia.
When submitting text to be included on Camposol Today, please abide by the following guidelines so we can upload your article as swiftly as possible:
Send an email to editor@camposoltoday.com or contact@murciatoday.com
Attach the information in a Word Document or Google Doc
Include all relevant points, including:
Who is the organisation running the event?
Where is it happening?
When?
How much does it cost?
Is it necessary to book beforehand, or can people just show up on the day?
…but try not to exceed 300 words
Also attach a photo to illustrate your article, no more than 100kb