– The Spanish real estate development sector remains robust. While current figures don’t mirror the peak seen in 2007, the market shows resilience. It is built, financed, sold, and prices trend steadily upward. Demand is steady and there is no surplus.
– At the onset of the epidemic, construction did not halt entirely, stopping only in limited periods. It proved to be among the sectors least disrupted by lockdowns. Projects progressed, sales continued, and new deliveries kept pace with pre-pandemic rhythms. In 2020, expectations were high, yet visits shifted first to virtual formats and then to in-person meetings, with homes under construction or sold during the pandemic reaching delivery milestones. Current activity mirrors 2019 in many respects.
– In general, the sector is expected to increase private rental housing supply. A higher supply supports market stability, helps control prices, and elevates quality. Smart markets recognize that ample supply is a key driver of healthy competition across all segments.
– “The industry is recording rhythms and numbers similar to 2019.”
– Price pressures exist due to rising construction costs. More supply helps moderate prices and enhances quality, which remains a priority. In the end, competition governs the market.
– Costs cannot simply be passed along the chain. Buyers consider savings and mortgage capacity, and their flexibility is finite. What matters is disposable income for housing, which is squeezed as other shopping components rise. Inflation trends will reveal how far the recovery continues, and if wages do not rise in tandem, household purchasing power could decline.
– A shortage of both quantity and quality labor exists. Some assume the construction sector is underinformed, but it actually demands a broad array of specialists.
– Financial institutions and companies are exercising greater caution. Financing becomes necessary to start a project, and pre-sales are often needed to secure funding. In the years leading up to the 2008 crisis, caution was less pronounced.
– “The more the supply, the better the prices are controlled and the quality is guaranteed.”
– The risk of a housing bubble today is considered low. The industry is cyclical with ups and downs, but a bubble creates its own burst. The conditions seen in 2008 are not present now. Volatility, leverage, and rapid price increases that fueled that crisis have diminished. Demand is healthier, leverage is lower, and homes are bought to rent or to live in rather than solely for profit. A notable difference is the amount of unsold inventory.
Grupo Lar’s leadership, with Miguel Pereda at the helm near the Madrid headquarters, reflects these dynamics. The executive’s approach blends warmth with strategic insight, a combination that translates into ongoing engagement with students at the Instituto de Empresa. He emphasizes continual learning through dialogue with younger generations.
– In his spare time, travel to open landscapes is a favorite pursuit, allowing close contact with nature. The journeys span Africa, South America, and Canada, reflecting a passion for exploration.
– He speaks of summiting Mount Kenya and Kilimanjaro, celebrating mountains as a source of challenge and connection with diverse cultures. Outdoor pursuits like skiing and fishing also characterize his interests.
In numbers:
- 58 YEARS OF HISTORY
- 180 MILLION BILLINGS
- 3,435 MILLION IN PORTFOLIO
- 13,458 HOMES IN PROMOTION
- 6 COUNTRIES
- +250 EMPLOYEES
– Data reflects 2021 figures.