Spain’s property developers failed to fulfil their business plans last year. The main problems included over-ambitious projections, delays in the issuance of licences, and challenges in the construction sector (e.g. lack of manpower and price hikes of materials). They were compounded by the entry into force of new procedures relating to the Mortgage Act. As a result, the property developers Neinor, Aedas, Metrovacesa and Quabit delivered 2,566 homes last year of the 3,800 units projected.
Quabit saw the largest discrepancy in its forecast vs actual figures. The property developer led by Félix Abánades revealed in May last year that it wasn’t going to achieve its initial business plan, which included the delivery of 911 homes in 2019, due to a 4-month delay in production. At the time, the company decided to internalise the construction process by buying Rayet Construcción, a subsidiary of the group controlled by its largest shareholder, and whereby better control the construction process. Following that profit warning, Quabit also revised down its home delivery estimate for 2019 from 700 units to 500.