INE: Licensing for the Construction of Buildings Up By 19.1% in 2nd Quarter

19 September 2018

In the second quarter of 2018, 5,600 buildings were licensed for construction in Portugal, while 3,600 buildings were completed. Licensed buildings increased by 19.1% compared to the second quarter of 2017 and by 5.4% quarter-on-quarter. Completed buildings grew by 17.9% year-on-year and increased by 3.0% over the first quarter of 2018.

According to the INE, 67.9% of the licensed buildings were for new builds, and 75.1% of those were for family housing. Demolished buildings (412 buildings) accounted for 7.3% of the licensed buildings in the second quarter of 2018.

The INE found that every region in the country showed growth compared to the same period of the year before. The highest variations were in the Algarve (+61.6%), the Lisbon Metropolitan Area (+43.2%) and the Autonomous Region of Madeira (+42.6%). The lowest year-on-year change was observed in the Northern region (+8.5%).

Licensed works

Licensing for the construction of new builds grew 20.0% compared to the second quarter of 2017, while rehabilitation works increased by 18.4%. Compared to the previous quarter, licensing for new buildings increased by 4.0%, and rehabilitation works increased by 10.7%.

Regarding licensing for new buildings, every region also saw positive year-on-year growth, especially in the Algarve (+87.7%) and Lisbon Metropolitan Area (+46.3%), as well as licensing for building rehabilitation, with the highest variations in the Autonomous Region of the Azores (+61.7%), the Autonomous Region of Madeira (+50.0%) and the Algarve (+43.9%).

In the second quarter of 2018, 5,300 new build homes were licensed for family housing, an increase of 44.1% over the second quarter of 2017, and up by 13.1 percentage points over the previous quarter (+31.0%). The Autonomous Region of Madeira was the only area that saw negative growth for this variable compared to the same quarter (-43.2%).

In an analysis by municipality, the INE concluded that a small number of municipalities accounted for a large proportion of the total number of licensed dwellings (considering all types of construction and location). Municipalities with greater growth were responsible for 19.8% of the licensing for new homes in the second quarter of 2018: Porto (8.9%), Braga (4.1%), Guimarães (3.3%), Alcobaça (1.9%) and Olhão (1.6%).

In Portugal, the total licensed area increased by 19.1%, year-on-year.

Completed Buildings

Regarding the total number of buildings completed (new constructions, extensions, alterations and reconstructions), the INE registered an increase of 17.9% compared to the second quarter of 2017. During this period, the Institute estimates that 3,600 buildings (77.0%) were completed, of which 72.2% were destined for family housing.

Every region had positive year-on-year growth, with the Lisbon Metropolitan Area growing by 48.6% and the Algarve up by 32.1%.

Completed new builds increased by 30.7% compared to the second quarter of 2017, while rehabilitation works decreased by 11.3%. Compared with the previous quarter, works completed for new buildings increased by 9.1%, while rehabilitation works fell by 13.2%.

The INE added that completed new builds showed year-on-year growth in every region. The highest growth was seen in the metropolitan area of Lisbon (+67.0%) and the Algarve (+50.6%).

Regarding rehabilitation works, positive year-on-year growth was limited to the Algarve and Metropolitan Area of Lisbon (+3.8% and +2.5%, respectively). The other regions recorded negative year-on-year variations, with the highest decreases observed in the Autonomous Region of the Azores (-25.0%) and the Autonomous Region of Madeira (-19.0%).

In the second quarter of 2018, 2,900 new homes were completed, an increase of 40.4% over the second quarter of 2017 (+34.7% quarter-on-quarter). Except for the Alentejo (-0.6%), every region had positive year-on-year growth, including the Autonomous Region of Madeira (+74.1%), North (+63.8%), Metropolitan Area Lisbon (+50.5%) and the Algarve (+46.2%).

Of the total number of buildings completed in the second quarter of 2018, 69.1% were located in the North and Centre regions, accounting for 67.5% of the total number of dwellings in new residential buildings completed throughout the country. In the North, 40.6% of the buildings and 43.0% of the dwellings were located. In the Lisbon Metropolitan Area, 11.7% of the total buildings and 16.1% of the country’s new homes were completed.

In the second quarter of 2018, there was an increase of 30.0% in the total construction area in Portugal, compared to the second quarter of 2017.

Original Story: Construir

Translation: Richard Turner