15/10/2013 00:00
TW
0
STAFF REPORTER

PALMA
Around 552.5 million euros worth of private construction was planned between January and August this year in the Balearics, a drop of around 5.5 percent in comparison with the same period last year, the Balearic Builders' Association reported yesterday.

The Association said that the results for the first eight months of the year show that private construction activity in the Islands has not taken a turn for the better, but rather has undergone decline in both the building of residential property and in reforms of tourist establishments. The industry said that it cannot predict that there are going to be jobs to be had in the sector until government-funded plans to overhaul old hotel premises in the islands are firmed up.

Making a specific analysis of private construction from January to August this year, the Association said that plans for 1'234 new private homes were registered with the Balearic College of Architects, whereas there were 1'373 lodged during the first eight months of 2009, a downturn of 10.12 percent.

The Association added that in terms of investment in renovating outdated tourist establishments, 31.2 million euros was invested from January to August, 4 percent less than in 2009.

Tourist businesses in the Balearics have apparently asked for 213.65 million euros worth of credit to spend on the “Renove Turismo” overhaul programme put forward by Central Government.

KICK START THE CONSTRUCTION INDUSTRY
The money is to finance 624 separate construction and reform projects which would take three years to complete. Plans for both the credit arrangement and the construction programme must be firmed up by this winter or next.

According to Balearic government calculations, the credit offered to the tourist businesses through the “Renove Turismo” project would ultimately lead to an investment of 478.15 million euros in the Balearic tourist industry.

Builders are hoping that some of the plans are finalised up this winter rather than next so that work can be undertaken prior to the onset of next year's tourist season. Were work to start imminently, it would greatly help to kick start the construction industry, the Association said.

It is only in the industrial and commercial sector where the Balearic Builders' Association has been able to report a growth trend. Planned investment in the first eight months of this year has reached 193 million euros, a 19.5 percent increase on figures for the same period in 2009.

Finally, the Association said that separately from the tourist industry reforms, work which has involved its members in planned improvement or modernisation works generated investment of 151 million euros in the first 8 months of this year, a downturn of 45 percent in comparison with January to August 2009.