“Investment in brick and housing is going to stop being attractive”. The general secretary of the Provincial Confederation of Businessmen of Santa Cruz de Tenerife (CEOE-Tenerife), Eduardo Bezaresacknowledged this Friday the concern that has aroused the controversial housing law of the Government of Pedro Sanchez among the business community of the Islands. As the two provincial construction employers have already warned -Fepeco in the Tenerife demarcation and the AECP in the province of Las Palmas-, Bezares was convinced that the new regulations of the PSOE and Podemos will lead to the withdrawal of many homes from the rental market. If so, the supply of flats and houses for rent will be reduced when the problem of high prices is precisely due to the lack of supply. Ultimately, the business representative admitted, investors will think twice before allocating their money to an intervened sector.
It must be remembered that the law, which the Government of the Canary Islands has welcomed, allows the Autonomous Communities to declare towns, neighborhoods or streets as stressed areaswhich empower regional executives to run into rental prices in those areas. As a general rule, they could not rise more than 3% in 2024 and more than what is determined by an index that the Ministry on duty has yet to develop as of 2025. “It does not seem that this encourages the offer,” said the economist. Jose Miguel Gonzalez, Director of Consulting at Corporación 5, which is the firm in charge of the CEOE’s current situation reports. In short, Bezares stressed that the employers would “love” to be part of the “conversation” with the regional government on this matter, thus conveying his vision, and supported the construction businessmen in their request that the controversial law not be applied in the Archipelago. After all, the declaration or not of stressed areas is somewhat optional, hence Autonomous Communities such as Madrid either Andalusia have already announced that they will not apply the measure.
Teleworking “has come to dramatically worsen” the mismanagement of the public administration
Apart from the new housing regulations – which “does not seem to be going to help us reduce the unemployment data either,” added Bezares -, the general secretary of the CEOE-Tenerife also admitted that There is “great concern” among employers about the introduction of teleworking in the Public Administration. “It has come to dramatically worsen” the already historic delays of the island institutions in resolving procedures and files. “It is something that we already knew and that has us very concerned,” insisted Bezares, who was joined by González to demand from the Government a control system that prevents the proper functioning of public services from being left to the mere will of the official on duty.
The island’s economy continues to grow but faces a “gradual slowdown process”
Regarding the economic prospects, the CEOE’s current situation report for the first quarter of the year detects “chill” symptoms. The foreseeable falls in consumption and investment and the increase in financial costs due to the rise in interest rates leave the estimate of the rise in GDP in 2023 at 2.7%. The economy, therefore, will continue to grow, but at a much slower pace, thus facing a “gradual deceleration process”, in the words of González. Regarding the risks, the economist cited the return to control of the debt and the deficit in 2024, inflation and the possible low execution of the European extraordinary funds. Not surprisingly, a recent report by Corporación 5 concludes that the Canary Islands lose around 50% of the community money it receives due to its inability to execute it. “Despite whoever weighs, the data is what it is”he emphasized.
