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RICS-CGATE: Construction Costs to Rise by More Than 4% Over the Next 12 Months

The current pressure on profit margins is also visible in expectations for bid prices and construction costs.

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Construction is showing signs of recovery in Spain, with an optimistic outlook for the first quarter that will gradually improve as 2021 progresses. The data stems from the first “Construction Diagnostic Report”, based on professional surveys by the Royal Institution of Chartered Surveyors (RICS) and the General Council of Technical Architecture of Spain (CGATE).

In all subsectors, the main stumbling blocks holding back activity are insufficient demand, which continues to be frequently mentioned by respondents (more than 50%), and financial constraints, which is the focus of 64% of respondents.

Another determining factor identified by the companies surveyed is the shortage of qualified personnel, which has become a “growing problem despite the modest recovery of the sector to date,” according to the respondents.

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