CaixaBank and FEPECO Renew Their Alliance to Give Tenerife's Building Sector a Boost

In a move that signals continued confidence in Tenerife's economic backbone, the bank CaixaBank and the Provincial Federation of Construction Employers of Santa Cruz de Tenerife, known as FEPECO, have put pen to paper once again. The renewal of their collaboration agreement is not just a formality; it is a strategic decision to keep a steady flow of credit and tailored services running to the companies that are quite literally building the island's future.

This is not a blank cheque with a flashy number attached. The exact volume of the financing envelope has not been made public. Instead, the power of this deal lies in its promise of "advantageous conditions" and a deep understanding of the sector's unique rhythms. It is a commitment from a major financial player to stand shoulder-to-shoulder with local firms, from the family-run renovation specialist to the developer shaping a new coastal skyline.

A Tailored Toolbox, Not Just a Loan

The heart of the agreement is about preferential access. CaixaBank is opening its entire catalogue of business and real-estate products to FEPECO's members under special terms. While the fine print on interest rates and specific maturities remains confidential, the direction is clear: make it easier and more attractive for local construction and property businesses to get the financial backing they need.

Based on the bank's standard offerings for the sector, this likely means a practical toolkit for everyday business. We are talking about financing for new housing developments and major rehabilitation projects, crucial guarantee lines (avales) that secure deposits for off-plan buyers, and facilitated mortgage facilities that help developers close sales. The pact also includes a commitment to joint information initiatives, ensuring that local businesses are not just offered products, but are also kept in the loop on how to use them best.

The Signatures Behind the Strategy

The agreement was formalized by two key figures in the island's economic landscape. For CaixaBank, the signature came from Manuel Afonso, the bank's Territorial Director for the Canary Islands. Representing the province's construction employers was Olga Sanfiel, the president of FEPECO. Their handshake is a clear signal of mutual intent: the financial world and the building sector are aligning their strategies for the long haul.

This renewal is a vote of confidence in the sector's present and future. It recognizes that construction is not a peripheral activity but a central pillar of Tenerife's economy. The agreement is designed to be functional, directly supporting the day-to-day operations and long-term projects of its members, whether they are pouring foundations for a new residential complex or renovating a historic townhouse.

Why Now? A Sector in Full Swing

The timing of this renewed alliance is no coincidence. It comes as the construction sector in the Canary Islands is experiencing a powerful upswing. In the first half of 2024, the surface area approved for new builds and renovations across the archipelago surged by nearly 35 percent compared to the same period the previous year. This was one of the most dynamic performances in all of Spain, painting a picture of cranes on the skyline and a deep demand for new housing.

This boom is not just on paper. The province of Santa Cruz de Tenerife has seen its construction employment recover to surpass pre-pandemic levels, a feat not achieved by all major economic sectors. The number of unemployed in the sector has also fallen to historic lows. This agreement is designed to pour fuel into an engine that is already running hot, ensuring that the current momentum translates into sustainable, long-term growth for local companies.

A Perfect Storm of Positive Indicators

Zooming out, the CaixaBank-FEPECO pact fits perfectly into a broader picture of economic vitality on the island. Tenerife recently smashed its own employment record, with over 460,000 people in work during the first quarter of 2026. The unemployment rate has simultaneously dropped to a remarkable 8.76 percent, a two-decade low that is significantly better than the Canary Islands average. A population with jobs and confidence is a population that demands homes, offices, and infrastructure.

Furthermore, investment data shows that money is actively chasing bricks and mortar. In December 2024 alone, construction and real estate activities led capital investment in the Canary Islands, with over 200 million euros deployed—an 85 percent jump year-on-year. This agreement ensures that a significant portion of that future investment can be channeled through a local, preferential financial framework, reinforcing a virtuous cycle of growth.