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Sunday, November 27, 2022

Construction companies prepare for a drop in projects by 2023

The employers' association foresees that the economic uncertainty and the downturn of the real estate sector will be felt in construction in the coming year | There is confidence that the crisis will have less impact on the Pitiusas Islands because of the luxury market

The construction companies of Ibiza are already preparing for a change in their sector because of the economic downturn that is announced for this autumn and the rise in interest rates. However, they are confident that this crisis will have less impact on the Pitiusas than in other places and assure that, at least until mid-2023, the volume of work is assured.

Imagen De Archivo De Unas Obras En El Barrio De Es Viver. | Vicent MaríFile image of some works in the neighborhood of es Viver. | VICENT MARÍ

This is what Consuelo Antúnez, president of the Association of Construction and Derivatives of Ibiza and Formentera of the Pimeef, has assured Diario de Ibiza. “By the end of 2022 and the first months of next year we will be working with the projects that have been endorsed during this first semester, so the activity is assured,” said the spokeswoman of the Ibizan builders.

During the first half of this year, according to data provided by the Colegio Oficial de Arquitectos de las Illes Balears (Coaib), 287 works were approved on Ibiza and Formentera, 9% more than in 2021 and approximately the same amount as in 2019, although far from the figure of 598 works approved in 2015, the peak of the real estate bubble.

Construction preparing for a slowdown

However, these companies are already starting to prepare for a slowdown in the volume of construction work and predict a change in trend: “People are reluctant to start projects, there is quite a lot of uncertainty. The rise in prices and also the general atmosphere is having an influence,” says Antúnez. The spokeswoman also explains that in the last year the cost of the projects has increased by 20%: “Supplies have gone up, there has been a lack of material, transport has become more expensive. These are factors that affect the decision to commission a project”.

For the full article, please visit Diario de Ibiza website here.

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