Spanish house building industry keeps shrivelling up

Planning approvals were down 17pc in year to August, and almost 90pc compared to 2006

Requests for planning approval fell 17.4pc in the first 8 months of the year compared to the same period last year, reveal the latest figures from the Ministry of Development.

There were just 62,868 requests in the year to August, compared to 551, 350 over the same period in 2006. That’s a decline of 89% in 4 years.

The graph above tells you all you need to know about the rise and fall of the Spanish property sector. Spain’s home-building industry has all but collapsed. Activity must be at the lowest level on record. At this rate there soon won’t be anyone left in Spain building homes.

The good news? The sector’s nose-dive is getting shallower, which is hardly surprising considering that it has almost hit the ground. This time last year the annualised decline was 62pc, compared to which the latest decline of just 17pc doesn’t sound so bad.

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comments

One thought on “Spanish house building industry keeps shrivelling up”

  1. jeremy aston

    I think that your comments are probably factually correct as I guess you are using statistics, but there most certainly is at least one exception to the rule which surely means that your comments above are inacurate?
    The company I represent TM Real Estate Group has certainly suffered during the past 3 to 4 years, however, the company has launched three totally new developments in the last six months – one in Mallorca; one on the Costa Blanca and a hughe resort development on the Costa Almeria. This is not a company on it’s knees, it’s a company which is expansive and looking to the future. Currently selling to clients from all over Europe and on well on the way to hitting sales targets this year.
    And why will this continue with TM? Because the company self finances its development programmes – no bank debts!
    So there is some good news for your readers but perhaps, like so many people in the media, you only peddle BAD NEWS. Dissapointing in many respects
    Jeremy Aston TMUK

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.