Spanish government confirms there could be up to 900,000 unsold new properties

The official estimate of the stock of unsold new properties in Spain stands at 680,000 units. However, the Ministry of Public Works stated in the presentation on Infrastructure, Transportation and Housing plan for 2012-2024, that its calculations do not include the self-promotion of housing (Co-operatives for example). If included, unsold new housing could be around 900,000 units.

The stock of unsold new homes closed 2011 with a total of 676,038 units, 1.7% less than in 2010, according to the report of the Ministry of Development. However, the figure excludes a number of properties, which are self built or run by co-operatives (so not built by promoters, whether public or private limited companies). These types of properties are now starting to constitute a higher percentage of the total unsold stock as financing is still hard to come by, and companies are having to adapt to the situation.

According to the Ministry, the 2012-2024 plan main task will to improve the quality of the future construction and help to create a more flexible rental market. This would cover a range of programs including public aid and grants which should come into force next year.

Andrew Belles

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