Sharp construction downturn will help to absorb housing overhang says Solbes

Nobody, not even the government or Spain’s association of constructors and developers now deny that Spain’s property market and construction sector are in crisis. The new narrative, it would seem, is to look for the silver lining.

The quicker the downturn, the sooner the recovery, is how Pedro Solbes, Spain’s minister of finance, puts a positive spin the gloom coming from the property sector.

Speaking at The Conference Board meeting in Spain last week, Solbes said that the rapid slowdown in residential construction will help speed up that rate at which the market can absorb Spain’s housing overhang.

He also said that the sharp correction will help remedy “past errors”, and put the Spanish economy on a path to more balanced and sustainable growth.