Spain’s construction market is poised for significant growth in the near future. Projections expect a solid increase from USD 186.94 billion in 2023 to USD 216.72 billion by 2028, which indicates a robust CAGR of 3% during the forecast period (2023-2028). Against a backdrop of economic fluctuations, Spain’s GDP faced a decline of 1.3% over the 2010-2020 period, dropping to USD 1.3 trillion in 2020. However, a notable resurgence occurred in 2021, with a 5.1% growth in GDP. This is the kind of climate that the building and construction industry in Spain has to adapt to.
The onset of the COVID-19 pandemic cast a shadow on the construction industry, which saw an almost immediate decline in investments (by as much as 9.6%) during the first quarter of 2020. Sectors like transport and hospitality experienced an 11% reduction in construction activity output during the same period. Despite a 4.1% annual setback in 2021, Spain’s construction industry is on a trajectory to rebound. Early reports anticipated an 8.3% real-term growth in 2022.
The strategic allocation of funds is a pivotal driver for Spain’s construction reboot. A noteworthy 28.2% (approximately USD 22.1 billion) of the total grant is earmarked for digital activities, emphasizing the promotion of business digitalization for SMEs. The overarching goal is to fortify digital skills, bolster R&D, advance public administration's digital transformation, enhance nationwide digital connectivity, and deploy digital technologies.
Spain's construction sector stands at the cusp of a positive trajectory. Investments in public sector infrastructure, digitalization, energy-efficient housing renovations and a commitment to a green circular economy, buoyed by substantial EU funding, are anticipated to propel the sector into a phase of sustained growth. As the construction landscape evolves, Spain demonstrates resilience as it adapts to challenges and embraces opportunities for a bright future.