Timid Recovery In New Housing Construction

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Permits to build new homes staged a timid recovery increasing by 6.7 per cent in the first ten months of 2014 compared with the same period in 2013, according to data from the Spanish Ministry of Public Works (Fomento).

On a monthly basis, new building permits were up one per cent to a total of 30,858 applications, said the Ministry

In October 2014, 3,265 applications to build homes were made, some 15.6 per cent more than the same month in 2013.

If the current application rate is maintained, the number of new-build permits could reach around 37,500 units by the end of the year, higher than the level in 2013 (34,288 units), but still below 2012 (44,162 units).

Around two thirds of all new-build applications – 20,950 – were for apartment blocks, 9 per cent more than the first ten months of 2013.

The remaining 9,891 permits were for single family homes, 2 per cent higher than the number registered between January and November 2013.

In addition, 19,011 applications were made up to November for permits to restore or refurbish properties, a slight drop of 1.6 per cent compared with the same period in 2013. The number of applications for property extensions fell by 17 per cent to 1,318 permits.

It is important to remember that new housing construction is currently close to historic lows having imploded after Spain’s hubristic real estate boom turned to ashes. The increases reported by these figures are coming of a low base. The residential construction sector is still in a deep depression, despite the fact that demand for quality new homes appears to be returning to life.

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