24 Mar, 2022 @ 18:32
1 min read

New home buyers on Spain’s Costa Blanca hit with shock news due to high raw material prices

Holiday home buyers on Spain's Costa Blanca get shock news of high raw material prices forcing halt to new property builds
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ESCALATING raw material costs are causing some Costa Blanca builders to pause new projects as they are financially unviable.

The Alicante Province Real Estate Developers Association(Provia ) has discussed the possibility of it calling for a general temporary halt to new builds if there is no imminent change.

Some members have already put in a ‘temporary stop’ at sites, or not even bothered to start construction.

High raw material prices have been described by Provia as ‘unjustified’.

Provia believes that if the current situation continues, work on an estimated 1,525 homes will not begin, which means a loss of investment in Alicante Province of over €326 million.

It adds that 3,700 jobs are threatened under the current circumstances.

A Provia statement said: ”A pause in activity that we are proposing would be a response to price increases which is making projects unfeasible.”

It claims that despite the granting of new construction licences between October and February, many have not been acted upon due to the hike in construction costs.

Projects that are already underway may see big rises in house prices to cover the unforeseen hike in expenditure in raw materials.

Work has slown down on some sites to eat up some time to see what happens which will inevitably mean a delay to new home buyers getting the keys to their property.

The general construction sector has already seen work on an extension to a Javea school halted for at least three months in February due to spiralling costs.


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