Top Real Estate Players Gather in Malaga
The annual Simed forum took place in Malaga, bringing together executives from Spain’s leading construction companies to discuss the current state of the housing market. Representatives from Landco, Neinor Homes, Urbania, Ginkgo Advisor, AQ-Acentor, Metrovacesa, Culmia, and Lagoom Living voiced concern over the lack of progress in addressing the housing crisis. According to them, the situation has changed little over the past year, and the issue of housing affordability has reached a national scale.
Legal Barriers and Administrative Delays
Forum participants noted that the absence of an updated version of the Ley del Suelo (Land Law) and the inability to achieve political consensus are hindering the launch of new projects. According to representatives of Neinor Homes and Urbania, government agencies not only fail to promote market growth but often delay approvals, resulting in longer construction timelines. As a result, even with viable projects ready, companies face bureaucratic obstacles that slow down the sector’s development.
Land Shortage and Its Impact on the Middle Class
Executives from Ginkgo Advisor and AQ-Acentor identified the lack of suitable land for development as the main reason for stagnation. Even with qualified professionals and investment, solving the land issue is essential to increase construction volumes. This is especially affecting the middle class’s ability to purchase a home, as rising prices outpace income growth.
Critical Situation with Power Grids
Forum participants paid special attention to the state of the energy infrastructure. According to them, even fully prepared projects cannot start due to the lack of connection to the power grid. Leaders of Metrovacesa and Landco stressed that issues with energy supply have become one of the main reasons for delays in the construction of new residential complexes. Companies are calling on the government to provide subsidies and speed up network modernization to remove this barrier for the industry.
Industrialization of construction and market prospects
As one solution, developers are considering a shift toward industrial construction methods. Representatives of Culmia and AQ-Acentor believe that modular technologies can speed up certain stages of the work, although they do not lower costs due to expensive materials. Nevertheless, industrialization is seen as a promising direction for future market development.
The need for cooperation with the government
Wrapping up the discussion, participants emphasized the importance of dialogue between business and government bodies. In their view, only joint efforts will increase housing supply and overcome existing barriers. Without government support and consideration of the construction sector’s interests, solving Spain’s housing shortage will be impossible.
