8 November 2019 – The recovery of the Spanish property market since its nadir in 2013 has been relatively slow and concentrated in the country’s largest cities. In that year, developers applied for just 34,000 construction permits to begin work on the development of new homes. The year 2006 saw the last decade’s peak of a staggering 860,000. Last year, municipalities issued 100,351 new permits, when market sources state that Spain’s needs between 100,000 and 150,000 per year to keep up with demand.
The recovery, however, has been limited to the country’s largest urban centres. Major developers have so far largely ignored Spain’s smaller cities and towns, leaving any needed construction there for much smaller, local builders with limited financial capacity.
Last year, developers concentrated the majority of their investments (51.6%) in just five provinces: Madrid, Barcelona, Malaga, Alicante and Bizkaia, which together account for just 36% of the country’s inhabitants. Ten provinces account for 65% of the homes built, while another 40, which account for 45% of the country’s total population, saw just 35% of the requests for new construction permits.
Original Story: Cinco Dias – Alfonso Simón Ruiz
Adaptation/Translation: Richard D. K. Turner