Greece and Spain Housing Construction Levels Forecasted to Grow Fastest through 2022
While India and China are forecast to account for over 33% of the new homes built worldwide through 2022, the fastest annual increases are projected for Greece and Spain.
Global new housing construction levels are forecast to increase 2% per year to 60.6 million units in 2022, according to a new study from The Freedonia Group. Together, India and China are forecast to account for over 33% of the new homes built worldwide through 2022. Both countries are expected to see demand for new housing continue to rise along with their expanding middle classes and growing urban populations, as well as the implementation of government programs to increase the supply of low-income housing.
The fastest annual increases in new housing construction are projected for Greece and Spain, which both saw double-digit declines between 2012 and 2017. Housing demand will rise quickly due to an improved economic outlook, stabilizing home prices and growing interest in new property investments by foreign buyers. In addition, government programs to fund the construction of new rental housing in Spain will help boost construction. However, new housing in both countries will remain well below historical levels.
The global housing stock is forecast to expand at a 1.5% annual pace through 2022, rising slightly faster than the world’s population. Higher income levels will enable families living in shared quarters to move into their own dwellings and will help more affluent households to afford purchases of second homes. Single-family dwellings will continue to account for close to two-thirds of existing homes worldwide, although growing urban populations are supporting an expanding share of multifamily units.
Additional details are available at www.freedoniagroup.com.