New construction is feeling the effects of the pandemic. The uncertain economic situation it has generated has made banks become more reticent to offering loans for new construction, which has provoked a building paralysis by construction companies: Immediate help is needed in order to stop this tendency in 2021.

The consequences of the pandemic are starting to become evident in new construction in Catalonia. With the situation of economic instability that we are living, banks are much more reticent to give loans. There is a higher percentage of houses sold beforehand in order to finance each project. With this setting, the sector has become much more uncertain. The permits for new construction have slowed down or even been completely paralyzed and, consequently, off-plan sales as well.
In numbers, the fall of permits for new buildings was 40% from January to September. Tarragona and Lleida were the provinces where the fall was the most pronounced. Barcelona was where the decrease was less evident because there is more new construction. It is forecasted that investment in construction in Catalonia will fall 20% in 2021.
This decline in production is also seen in the decrease in prices. Currently, there has been a 5% descent. Second hand properties have also felt this decrease in sale prices even more prominently.
The forecast for the upcoming months is not very encouraging and if help is not immediately given to the sector, the decrease in construction could continue throughout all of 2021. Lluís Marsá, president de l’Associació de Promotors de Catalunya (Association of Developers of Catalonia), highlights the traction value of the construction sector at a time when there are no public resources to generate new jobs.
The European Union, at the head of this situation, will contribute funds for the rehabilitation of housing and other projects related to construction such as sustainability, energy efficiency and climate change.