Building a better tomorrow: The social and environmental impact of Efico Homes in Spain

At Efico Homes we are committed to creating a positive social impact in Spain. By purchasing and revitalizing stalled projects that are a work in progress (WIP), we can address many social and environmental concerns.

General advantages of revitalizing WIPs

Abandoned buildings often result in uncontrolled and unsupervised garbage disposal, creating significant public health risks. In addition, homeless people frequently seek shelter in these structures, exposing themselves to unsafe living conditions, including the risk of building collapse. There have also been instances of individuals exploring abandoned buildings and sometimes seriously injuring themselves. Furthermore, the sale price of a home or building, specifically in coastal areas, can be affected by the view it offers. Deteriorated and abandoned buildings significantly affect the quality of the view and can therefore harm the value of surrounding properties. The persistent problem of abandoned and unexploited construction projects in Spain has led to environmental, social and economic challenges. These include public health risks, concerns about homelessness, and depreciating property values. Efico Homes’ efforts to revitalize such projects represent a proactive step to address these multifaceted issues and foster sustainable development.

Need for more housing

According to Caixa Bank, there is currently an insufficient supply to meet housing demand in Spain, particularly in large cities and coastal areas. From 2020 to 2022, around 420,000 new homes were created in Spain, but fewer than 300,000 new constructions were started during that period. The insufficient supply is most prominent in the regions of Madrid and Catalonia. In Valencia, Cantabria, Galicia and Andalusia, there are also significantly higher rates of home creation than new construction. Efico Homes has revitalized WIPs in all of these communities, except Galicia, adding a total of more than 1,000 residential units created. Furthermore, the average sale price is €157,000, meaning that Efico Homes is creating affordable options for households in Spain. There is a pressing need to increase housing supply, particularly in Spain’s main urban centres and coastal regions, as highlighted by the disparity between household creation and new construction. Efico Homes’ efforts to revitalise WIPs in several key regions, together with affordable housing strategies, mean steps to address the housing shortage.

Reducing construction and demolition waste

Each year, construction and demolition waste (CDW) accounts for 35% of all waste generated in the EU (around 450 million tonnes per year). However, in Spain the problem is even worse: CDW accounts for 40% of the total waste generated (around 44 million tonnes per year). Under Spanish law, all construction waste must be treated by a licensed waste management company that prioritises recycling. Despite this, around 75% of CDW in Spain does not reach recycling plants and is often dumped illegally. By renovating existing buildings rather than building from scratch, Efico Homes has prevented over 120,000 tonnes of construction material from becoming CDW. This is equivalent to preventing around 92,000 Volkswagen Beetles from ending up in landfills. Efico Homes’ approach of revitalising WIP presents a promising avenue to mitigate CDW generation, thereby contributing to waste reduction and encouraging more sustainable construction practices in the country.

Reducing energy and water use

Research results suggest that the production materials needed to build one square metre of a standard building can consume the energy equivalent of burning 150 litres of petrol. This means that Efico Homes has saved almost 16 million litres of petrol by retrofitting pre-existing buildings. This is equivalent to the amount of petrol that 240 Spaniards would consume by driving in their lifetime. In addition, the construction industry, particularly iron and steel manufacturing, contributes significantly to energy-related emissions. Iron and steel manufacturing generates 7.2% of energy-related emissions, compared to 3.6% and 1% for the chemical and food sectors respectively. At the same time, water scarcity exacerbates environmental concerns, as the concrete industry consumes almost 10% of the world’s industrial water supply annually. By using existing concrete in buildings, Efico Homes has saved 16 million litres of petrol by retrofitting pre-existing buildings.

Efico Homes has saved around 23,500 tonnes of water. That is the same amount of water that would be needed to manufacture around 9,000 cotton t-shirts. The environmental impact of construction, particularly in terms of energy consumption and emissions, underlines the urgency for sustainable practices within the industry. Efico Homes’ focus on revitalising existing construction projects not only addresses immediate environmental concerns, but also aligns with the imperative for sustainable and resource-efficient construction practices, thereby contributing to a more environmentally conscious construction sector.

Reduced carbon emissions

The Royal Institution of Chartered Surveyors (RICS) estimates that 51% of the total carbon emitted during the life cycle of a residential building is emitted before it is even opened. This is due to a concept called embodied carbon emissions. Embodied carbon emissions estimate the total amount of carbon emissions created by construction materials and processes throughout the life cycle of a building. It includes the carbon created during the manufacturing of building materials, the transportation of materials to the job site, and the construction practices used. Renovation projects typically save between 50% and 75% of embodied carbon emissions compared to constructing a new building. One of the reasons renovation projects can save so much embodied carbon is because cement, a key building material, is a huge carbon emitter. In fact, cement production accounts for around 8% of annual global carbon emissions. Efico Homes has saved over 81,000 tonnes of carbon emissions by using existing cement structures. To put that figure into perspective, the average European emits about seven tonnes of carbon per year. So 81,000 tonnes of carbon emissions is roughly equivalent to what 11,500 Europeans will emit in one year. To put that figure into perspective, the average European emits about seven tonnes of carbon per year. 81,000 tonnes of carbon emissions are therefore equivalent to the amount of carbon that 11,500 Europeans will emit in one year. Renovation projects, such as those undertaken by Efico Homes, significantly reduce embodied carbon emissions compared to new construction. This approach not only addresses immediate carbon savings, but also contributes to more sustainable construction practices, aligned with broader environmental goals.