EU Published Data Shows Spain Leads Construction Above All Member States
EU Data published shows that Spain leads the way in 2016 as predicted in terms of new property construction. There was a 20.6% rise compared to a year ago. January figures state that the EU generally saw a rise of 4.4% meaning Spain is well ahead of rest. Only Sweden are close with 18% rise.
I am sure many of you are reading this thinking that Spain still has a stack of bank repos so why are they building more property! The simple answer is that unbeknown to most people it is a fact that foreign hedge funds mainly from USA and Canada have purchased entities set up by the banks to hold stock. These hedge funds have no desire to cash in quickly and can wait for the recovery period to repair the market. They will of course sell along the way but not like a couple of years ago when banks were open to any realistic offer!