New Mortgage Lending Up 34.4% in First Half of the Year

August 31, 2021 – Ana Custódio

Cement consumption in Portugal increased by 8.3%, while 14,018 new homes were licensed for construction.

Mortgage lending rose by 34.4% in the first semester of 2021, as cement consumption increased by 8.3% and 14,018 hew homes were licensed for construction. AICCOPN (Association of Civil Construction and Public Works Industries) published the data based on its Statistical Synthesis of Housing analysis.

Between January and June 2021, cement consumption in Portugal rose by 8.3% year-on-year to 1.9 million tonnes.

At the same time, licences issued by local city councils for the rehabilitation of residential buildings rose by 17.1% y-o-y, while permissions for new builds were up by 15.4%.

Mortgage lending during that period totalled 7.178 billion euros, up 34.4%, compared to the same period of 2020.

The average bank valuation for lending purposes rose by 8.6%, y-o-y, in June, as the price of flats rose by 9.8%, and those of homes increased by 3.8%.

AICCOPN’s analysis highlighted the Algarve. The number of newly licensed homes for construction totalled 1,709 in the twelve months ending June 2021, increasing 19.5% compared to the 1,430 dwellings approved in the previous twelve months. Of these, 21.8% are studio or one-bedroom units, 34.2% are two-bedroom units, 34.4% are three-bedroom units, and 9.6% are four bedrooms or larger.

Translation: Richard D K Turner