According to forecasts made by the European Commission based on information provided by the association of large construction companies, Seopan, investment in the construction sector in Spain dedicated to building houses and flats is predicted to fall by 1.2% next year. It is also predicted that it will continue falling by up to as much as 10% over the next few years. These figure contrast sharply with the 3.5% growth expected in this subsector for 2007 and the 6.4% growth recorded in 2006.

The drop in the construction of homes is the principal factor behind the slowdown in the Spanish construction industry predicted for 2008. It is expected that investment in construction will only grow by 1.3% in 2008 which is substantially less than the 4.4% forecast for this year and drop further in 2009.

Other sectors of the Spanish construction industry are expected to continue growing with a 4% rise in activity predicted for next year and 3.8% for 2009 even though these figures show a definite slowdown in the sector as a whole compared to 5.

3% growth expected for 2007.
Spain together with Ireland and Portugal are the 3 countries in the Euro zone where an annual fall in the construction sector has been predicted for the period 2007-2009. In terms of the Euro zone as a whole a gradual decline in the construction industry has been predicted from a 3.5% growth rate this year to just 1.3% for 2009. A growth of just 2.2% is expected for 2008.

These figures contrast with those for Eastern European countries which are not in the Euro zone. Most of these countries are receiving large sums of European funds and a growth rate of up to 30% is expected in the construction sector there.

For example in Rumania the construction industry has grown 29.5% this year and is expected to grow by 21.5% next year and 17% the following year.

In Poland the construction industry has grown by around 20% this year and is expected to grow by 10.8% in 2009. Lithuania and Slovenia have also seen significant growth in their construction industries.

Large Spanish construction companies and estate agents such as FCC, Acciona, Ferrovial and Fadesa, have anticipated these events and many of them have established themselves in these new emerging markets in Eastern Europe.

Related: Property market in Spain