The Association of Builders and Developers of the province of Las Palmas predicts that the real estate sector will "collapse" in three years, if the "unstoppable rise in prices" of housing continues, which will lead to the insolvency of a demand that will continue to exist and, with it, a serious social, economic and productive problem.
This is the analysis that the president of the employers' association, María de la Salud, announced this Thursday, who described the economic situation of the sector as "flat encephalogram", which registers small upward and downward fluctuations, but still does not recover its weight in the GDP, having 50% less participation in the 2007 GDP, that is, "it grows on decreases".
Before presiding over the general assembly of the entity, she considered that the housing emergency has many causes, such as the regulatory framework and bureaucracy, areas in which, in her opinion, "measures are being taken by the Canary Islands Government".
However, this business association warns that the Canary Islands Housing Plan in force expires in 2025 and believes that this autonomous community cannot "afford the luxury of spending a year and a half doing another one", so it advocates "extending the current one, which was agreed upon by all political forces in Parliament, and providing it with a budget, since conceptually it is absolutely valid to solve the housing emergency".
She has also criticized that the banks "are not betting on the acquisition of land by developers and nothing on subsidized housing for rent, they do not want to finance them."
Gil has also warned of the "inflationary effect" that derives from "some measures of the modification of the Land Law, which increases the tax on land and decreases the use that real estate developers can make of it, which will make housing more expensive."
"It is absurd to think that this countermeasure can be approved, so we have asked the Canary Islands Government to reflect on this issue," she said.
The builders and real estate developers of Las Palmas emphasize the need to promote the industrial fabric of the sector and declare it as strategic, considering that "one's own, autochthonous one is needed, which allows self-sufficiency and reduces dependence on the outside to also reduce costs."
In relation to the behavior of public administrations when commissioning works to public companies such as Tragsa, Gil has denounced that "the drain on the sector continues, with almost 1,000 million euros being directly commissioned to that company in recent years."
To this is added the fact that between January and May of this year "more budget has been left deserted than all of the year 2024" dedicated to the awarding of works by the Administration and the millionaire debts of some municipalities "that have caused companies to fall", an issue on which she did not want to elaborate.
