Tag: permits

Núñez’s Complaint Against Colau’s Moratorium Deemed Admissible

7 October 2015 – Orbyt

The High Court of Justice in Cataluña has declared admissible a complaint filed by the construction company Núñez y Navarro against the Town Hall of Barcelona. Specifically, the company has denounced the moratorium that the municipal government team, led by the mayoress Ada Colau (pictured), approved at the beginning of the summer. The moratorium has resulted in the suspension of more than 40 hotel projects that were underway in the Catalan capital, for at least one year.

Núñez y Navarro, which has registered the complaint through one of its subsidiaries, is currently building a new hotel on Calle Rec Comtal, in the historical centre of the city. The Town Hall approved the project eight years ago, and given that it had already been granted the necessary permits and licences, the moratorium was not meant to affect it.

Nevertheless, at the beginning of the summer, the district counsellor of Ciutat Vella, Gala Pin, reported that an investigation had been opened to check whether there had been irregularities with the processing of the urban planning application. At that time, the municipal government did not rule out that the opening of this establishment could ultimately be suspended, in the event that it was able to prove that there had been malpractice in the rezoning of the site.

Overall balance

Yesterday, municipal sources refused to comment on the news that Núñez y Navarro’s complaint had been declared admissible. However, they did say was that the period (of two working months) during which companies affected by the moratorium are permitted to file complaints with the courts will come to an end shortly. Only then will the Town Hall provide an overall assessment of the impact of the measure.

The first consequences of Ada Colau’s moratorium have already been felt. At Deutsche Bank’s former headquarters, located on the corner of Avenida Diagonal and Paseo de Gracia, the existing building will no longer be demolished to construct a hotel, instead the property will be renovated and converted into luxury homes. By contrast, another iconic project will go ahead, namely the conversion of Torre Agbar into a luxury hotel to be operated by the US chain Hyatt.

Original story: Orbyt

Translation: Carmel Drake

CESCE: The Construction Sector Will Grow By 3% In 2015

18 August 2015 – Expansión

The construction sector will grow by 3% in 2015 and building work will begin on 45,000 new homes, according to the Sector Report prepared by CESCE, the company responsible for the Integrated Management of Commercial Risk and Credit Services.

This increase represents a turnaround for the construction sector with respect to the previous seven years, which have seen nothing but decreases.

In this sense, CESCE’s analysis predicts that the highest growth will be seen in the renovation and maintenance segment (3.9%), followed by non-residential construction (3.2%), residential construction (2.8%), and finally, by civil engineering, with a rise of 1.8%.

The company states that the production value of the construction sector amounted to €97,972 million in 2014, and that this figure is expected to increase to €100,900 million in 2015.

In total, 58,776 construction permits were granted in 2014, an increase of 0.06% with respect to 2013 – although minute, that rise was significant, as it was the first time the number of permits had increased after seven years of consecutive decreases. Nevertheless, the figure is still a long way below the peaks recorded in 2006, when 911,000 permits were granted in a single year.

According to CESCE, the adjustment in prices has resulted in a prolongation of the good times in the wholesale real estate market, but the improvement has been slow to impact retail sales and even slower to affect the construction market itself.

In 2014, the sale of homes increased by 21.6% YoY, to 365,593 units, with rises reported in all of the autonomous regions, in particular in Ceuta and Melilla, Madrid and Navarra, which recorded annual increases of 44%, 31% and 31%, respectively.

In 2014, the construction of 46,795 new homes was completed, a decrease of 93% since 2007, when 641,419 properties were finished. The figure in 2014 was 28% lower than in 2013, and represented the minimum of the historical series, which was created in 2000.

Nevertheless, the rental market in Spain has been strengthened by the economic crisis, since it has gone from being practically residual to accounting for 20% of Spain’s households (compared with 80% of homes that are occupied by their owners).

This percentage is still a long way below the average rate of rented homes in the rest of Europe (38%) and Germany (60%), although analysis of the data indicates that there has been a structural change in Spain both in terms of the market, as well as in terms of society’s mindset.

Original story: Expansión

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

BBVA: Positive Outlook For Housing Market In 2015

3 March 2015 – El Economista

The positive outlook for economic growth, better employment figures and favourable financing conditions will drive further increases in house sales in 2015, which will be accompanied by a “moderate” increase in prices and a further increase in construction activity.

That is according to the latest “Real Estate in Spain – Flash Report”, prepared by the Research Department at BBVA, which also states that “2014 could be classified as the year in which the recovery of the real estate sector began”.

Sales recovery

The entity points out that, according to the General Council of Notaries (Consejo General del Notariado), demand for properties showed signs of recovery month after month during 2014, to close the year with 364,000 homes sold, up 19.1% compared with 2013. “That was the first increase since 2007 and it reflects the greater level of activity in the mortgage market”, says BBVA.

At the same time, data from the Ministry of Development shows that there was a 0.5% increase in house prices last year, again, the first increase since the start of the crisis.

This recovery in the key real estate parameters led to a 1.7% increase in the number of construction permits for new homes in 2014, which the financial institution notes “breaks the trend of seven consecutive years of decreases and makes 2014 the turning point in terms of construction activity”.

The report forecasts that this positive trend will really take hold in 2015. BBVA Research expects the Spanish economy to grow by 2.7% this year, with the creation of around half a million jobs and relatively stable interest rates.

“All of these factors indicate that there will be a further increase in house sales and that prices and construction activity will respond with further growth”, says the bank.

Original story: El Economista

Translation: Carmel Drake