The Spanish property slump will mean the loss of 75,000 construction jobs this year in Andalucia, according to the Andalucia Federation of Constructors and Developers (Fadeco). Fadeco warn that this could cause social problems, as many of those who will lose their jobs are immigrants with few resources to rely on when unemployed.
“If construction falls, Andalucia will have a headache,” Emilio Corbacho, from Fadeco, told the Spanish press. But with local builders already describing the situation as a “deep crisis”, the headache is inevitable. Corbacho says that 2008 will be “very bad”, 2009 “less bad”, and only in 2010 will there be “light at the end of the tunnel.”
Fadeco blame the banks for causing many of the sector’s present problems by cutting of credit. “The market is there, but companies aren’t getting the oxygen they need,” said Corbacho, who also called on the regional government to intervene.
Many Andalucian builders are said to be pinning their hopes on a proposal by the Andalucian government to turn much of Andalucia’s stock of unsold properties into social housing.
The proposal has drawn strong criticism from outside of the sector. “It’s not right that the Junta bails out those who have been speculating with housing in recent years, helping them with public money,” said one left-wing politician in Jaen.
The local estate agents association of Jaen has said that property prices in Andalucia are more than 30% overvalued, causing the stock of unsold properties to rise to 90,000.