11 November 2017 – Don Piso
The house building sector is continuing its upward trend in 2017 in a solid way and is confirming its position as one of the main engines of the Spanish economy. And the studies that multiple bodies and private companies issue on the subject are increasingly reporting double-digit YoY increases in the sector. It is clear that in the short term, there is going to be more available new build products for Spanish house buyers.
In this sense, according to data presented in the latest monthly report from the Ministry of Development, between January and August, 35,993 homes were built in Spain, a figure that represents an increase of 39.7% compared to the first eight months of last year. In this way, 2017 is confirming the good trend of the construction sector, which started in January this year, putting an end to nine consecutive years of decreases (2008-2016). In this sense, since the maximum recorded in 2007, when a total of 641,419 homes were finished, the cumulative figure represents a decrease of 94% with respect to the full year 2016.
By type of property, 97.8% (35,150) of the homes finished during the eight months to August corresponded to projects backed by private developers, whilst the remaining 2.2% (783) were constructed as part of initiatives led by public administrations. In YoY, the construction of homes by private property developers grew by 38.4%, whilst in the case of public administrations, the number of completed homes rose from 322 to 783 this year. Finally, the value of the liquidation of the execution material of the construction network rose by 44.8% during the first eight months of the year to €4,736.5 million.
Original story: Don Piso
Translation: Carmel Drake