Ministry of Development: New Home Permits Soared by 27% in 2017

31 January 2018 – Eje Prime

Permits for the construction of homes are skyrocketing. The residential sector is experiencing a sweet moment and that is reflected by the good data that the Ministry of Development has compiled regarding the number of permits processed for the construction of homes.

In 2017, around 81,500 permits were requested. Note, the total number of permits requested during the whole of the previous year (2016) was exceeded in November 2017, with 74,960 requests. Those figures represent a YoY increase of 27.2% and complete four consecutive years of growth.

Between January and November, the bulk of demand for permits was made for the construction of block housing, which accounted for 56,714 permits, up by 30% compared to 2015, and accounting for 75% of the total number of requests.

Meanwhile, detached homes recorded a YoY increase of 14%, with 17,941 such permits requested. Moreover, requests to extend homes also grew last year, by 8.9% with respect to 2016, to reach 2,039 approvals.

Original story: Eje Prime

Translation: Carmel Drake

Housing Permits Increase By 28% During 5M To May 2015

31 July 2015 – El Economista

The number of permits granted by the Colleges of Technical Architects for the construction of homes soared by 28% during the first five months of 2015 to 19,134 – the best figure to be recorded during that period since 2012, according to the latest data published by the Ministry of Development.

Permits started the year with a 37% increase, to 3,466 in January. In February, the YoY increase soared to 57%, whilst in March, the trend was broken with a 13.5% decrease in the number of permits granted with respect to the previous month. The number then grew again in April and May, by 50% and 22%, respectively.

The growth in the number of permits granted between January and May comes after a timid increase of 0.003% in 2014, to 34,873 – the first year of growth in the sector after seven years in decline.

Despite the increase recorded during the first five months of the year, the number of housing permits being granted is still well below the peaks recorded at the height of the boom in 2006, when more than 217,000 permits were granted in the real estate sector during the first three months of the year, i.e. 94% more than during the first five months of this year.

In total, 30,140 permits were granted for new builds, renovations and extensions during the five months to May, which represents an increase of 20.5% with respect to 2014.

By type of property, permits granted for the construction of housing blocks increased by 35% (with 13,585 licences), whilst those granted for single-family homes grew by 13%, to 5,537 permits.

In terms of surface area, the average size of single-family homes was 201 m2 and the average for flats was 112 m2. The number of housing permits granted began to decrease in 2007 (which saw a 24.8% reduction) and since then have followed a downwards trend until last year’s tiny increase.

According to the Ministry of Development, which began compiling these figures in 1991, permits reached their historical minimum level in August last year, when only 1,585 permits were granted. The historical maximum level was recorded in September 2006 when 126,753 permits were granted in a single month.

Original story: El Economista

Translation: Carmel Drake

AEV: Activity Is Returning To The Home Appraisal Sector

17 March 2015 – El Economista

Activity is returning in the home appraisal sector, with increasingly higher growth each quarter; meanwhile the real estate market is stabilising, according to data from the Spanish Association of Value Analysis (AEV).

Thus, the number of building projects valued, which amounted to 179 in the first quarter of 2014, increased to 224 in the second quarter and to 367 in the third quarter.

Similarly, new appraisals of individual homes, which experienced year-on-year growth of 7% during the first half of the year, accelerated to 10% in the third quarter.

Prices are not rising in the same way

However, the recovery in the sector is not being accompanied by an increase in prices, according to the AEV. The average appraisal values for housing blocks continued to decrease to September 2014, from an average value of €1,342/m2 in the first quarter down to €1,262/m2 in the third quarter, i.e. a decrease of 5.9%.

Meanwhile, data regarding detached homes (viviendas unifamiliar) showed stability during the course of the first nine months (of 2014).

For the secretary of AEV, José Manuel Gómez de Miguel, this data “provides statistical confirmation of the recovery in the residential sector and of the solvent demand for credit that had already begun to be felt in 2014”.

Original story: El Economista

Translation: Carmel Drake