Construction sector falls by 7.3% in Spain during the first quarter of 2023

20.07.2023

The DoubleTrade report on construction in Spain reveals that 14,516 construction projects were executed in the first quarter of 2023.

Despite the decline in volume, the budget grows by 12.7% driven by the rising costs of materials.

The construction sector is slowing down in Spain. After several consecutive years of continuous growth in the volume of construction projects, there has been a change in trend in recent months, with fewer projects registered but with higher budgets than usual. During the first quarter of 2023, 14,516 construction projects were carried out in Spain, which is 7.3% less than in the same period in 2022 (15,662 projects).

As revealed by the study "Analysis and Evolution of the Construction Sector," conducted by the technological firm of analytical solutions, DoubleTrade, a total of €24.888 billion was allocated to the execution of these projects in the first three months of 2023. This budget represents an increase of approximately 12.7% compared to the investment made in the first quarter of 2022 (€22.081 billion), contrasting with the reduction in the total number of projects executed.

"These data reveal how the average budget for construction projects has grown exponentially, driven by the rising costs of materials," analyzes Xavier Piccinini, General Director of DoubleTrade Spain. The increase in costs, inflation, and the rise in bank interest rates are the main culprits behind the slowdown in the volume of construction projects. "Despite the decline, the negative effects have been limited thanks to the construction industry's resilience in the face of a global economic slowdown," says Piccinini.

By regions, the region with the highest activity in the construction sector during this period is Catalonia, with 2,221 projects valued at €4.241 billion; with Barcelona being the province in Spain with the highest volume of projects, with 1,276 constructions valued at €3.313 billion. Andalusia closely follows with 2,131 budgeted projects totaling €2.629 billion. In the Andalusian region, Cádiz stands out as the province with the most projects in the CCAA, reaching 530; while Sevilla has the highest investment, amounting to €499 million. Madrid also stands out, aggregating 1,028 projects valued at €2.599 billion.