The general director, José Antonio Izquierdo, considers that the solid demand, the lack of stock of built housing and land, plus low interest rates will boost residential construction activity after COVID-19

 Alicante, April 13th.- The lifting of the stoppage of the construction sector motivated by the COVID-19 pandemic will allow the Alicante developer Alibuilding to restart the works of the more than 400 homes in its different developments on the Costa Blanca and Madrid. The start of activity within the construction sector will begin next Tuesday after the Holy Week holidays. In addition, the closing days of the construction activity in Spain have coincided with an interest among customers with increases in the search for online information on promotions.

According to the general director, José Antonio Izquierdo, this situation is the same as that experienced by the majority of real estate developers in the province of Alicante and pointed out that "in these days of paralysis of the sector and collective confinement, the flow of information and demand about our products  through the internet has increased, at the same time that the number of cancellations of reservations is invaluable".

In his opinion, this is due to the existence of a solid demand for quality housing, a non-existent stock of new housing, a lack of land for construction, and the maintenance of cheap credit means that the prospects for the real estate sector are flattering. “Not only for us, but for all promotions. We are convinced that construction will once again be the engine of economic recovery after this economic crisis caused by the coronavirus ”, he added. In fact, interest among customers remains stable on Alibuilding promotions in Alicante, Benidorm, Denia and Madrid, where it has two   of them.

The COVID-19 crisis and the 2008 crisis

Izquierdo estimates that there are elements that allow confidence in the sector, since at present, the market builds fewer homes than is being demanded. The general director of Alibuilding considers that this element, "plus the lack of stock of built housing, which makes us all sell off plan, and a non-existent park of land for construction, augurs good prospects for the real estate sector".

However, Izquierdo acknowledged that the loss of jobs in these months will have an effect on the country's economy as a whole, but at the same time he felt hopeful that the recovery will be very accelerated and closely linked to the sector, which has great ability to create jobs. "It is true that the success in decision-making in matters of monetary and fiscal policy both by the Spanish Government and by the European Union will also help the stability of the residential market," he added.

Furthermore, although this situation has been exceptional and never experienced before, Izquierdo ruled out that the sector goes back to situations such as the 2008 crisis. "We are in another moment and with a sector that did learn from those moments," said Izquierdo.

The top manager of Alibuilding explained that all the developers have a very low level of debt and optimal levels of liquidity, which ensures price stability without sudden fluctuations either up or down.

Izquierdo describes the “development sector as much more professional, it is more prepared and willing to face changing situations. It creates quality products, very elaborate, with great materials and with full guarantees for the buyer with almost absolute price stability ”, he explained.