Castilla-La Mancha will receive more than 1,050 million euros from the European Recovery Plan ‘Next Generation EU’ this year 2021, which will be distributed among different sectors.
The Comptroller General of the Castilla-La Mancha Community Council, Francisco Javier Martín Cabeza, has commented on these grants for Castilla-La Mancha during the opening of the XXI International Congress of the Spanish Association of Accounting and Business Administration (AECA), stating that “a door has opened for us with great opportunities and sufficient funds to embark on a real transformation of our economy that will put us in an advantageous position for the future.”
The region has many advantages that make it an interesting attraction for investment thanks to its large territory and available industrial areas.
According to official data from the Ministry of Transport, Mobility and Urban Agenda, in the third quarter of 2020, public tenders in our region increased by 55.7% year-on-year. Private activity, on the other hand, recorded a slight decline in new construction, but recovered from October onwards, when new private-initiative construction projects were approved with a budget of €37.8 million, up 3% on the previous year
The secretary general of the Federation of Construction Companies of Castilla-La Mancha (Fereco), Manuel Carmona, admitted to ABC that the risk of contagion in the construction sector is low, since much of the work is carried out outdoors or distance can be maintained
Manuel Carmona stressed the importance of financial aid from the Next Generation Recovery Fund of the European Union, which must come to end the current situation of crisis and uncertainty.
Part of this money will go to the real estate sector so that it can recover from the pandemic and increase its growth in the coming years.
The aim of these European funds is also twofold: on the one hand, to contribute to economic recovery and job creation, and, on the other, to make the economy more solid and resilient in the future.
The arrival of these funds offers great opportunities in various areas of the residential real estate sector, among which the following stand out:
The rehabilitation of houses. Currently, about 30,000 houses are rehabilitated annually in our country, and by 2030 this figure is expected to reach 300,000 houses.
The modernization of Spanish housing. It is about developing rehabilitation programs with different objectives, such as the modernization of the residential park, in order to create a more sustainable model.
Access to Housing. With the help of these funds, it is planned to create housing programs for this segment.
The social rent impulse. Strong impetus for social housing with the Affordable Rental Housing Plan.
The digitization of the sector. In an increasingly innovative world, technology offers many opportunities for the housing sector.
The construction sector will also benefit from Next Generation EU funds. These grants will be a turning point for the construction sector in areas such as the following:
Boosting the construction sector. This sector will benefit from a direct contribution from the construction sector of 10% of GDP.
Modernizing and innovating the construction sector. The aim is to digitize the sector and reduce emissions in buildings, resulting in green buildings and cities.
A more stable construction sector. The sector will be less vulnerable to economic crises and better able to adapt by benefiting the general economy.
The challenge for the coming years is to create cities that are more environmentally friendly, aware of climate change and the societies that live in them, benefitting all parties.