In Madrid, City Hall has approved 2,741 homes in the first eight months of the year, 35 per cent more than in the period last year, deputy mayor Enrique Núñez told local. Of the total, 54 per cent of the planning approvals were designated for some sort of social housing, but 46 per cent were free of restrictions.
At the current pace, Madrid is on track for 4,300 planning approvals this year, “which in economic terms means 258 million Euro of investment and the creation of 10,750 jobs for the City of Madrid,” Nuñez said.
Building activity in Madrid tends to recover before other places, so it is closely watched by real estate analysts looking for signs of recovery. It is also worth noting that Madrid homes, after recent price drops, are considered relatively affordable by European standards, according to a new report by Deloitte.
But Madrid is not the only area with building activity. Torrevieja’s planning department processed 451 licenses for new homes in the first half of the year, a 339 per cent increase from a year earlier, The Leader reports.
Torrevieja expects to see 1,000 homes built this year, the paper reports. And there is evidence of growing demand for quality new homes on the Costa del Sol.
The numbers are still tiny, but any home building activity is a contrast to recent years, when virtually no homes were built. It also re-enforces a growing perception that the well-documented glut of homes in Spain doesn’t apply to apply to all areas and product sectors. There is demand for quality homes in many areas.
Any sign of home building is also a good sign for the economy, with the construction industry a key source of jobs. Madrid officials said the new planning approvals could represent more than 10,000 jobs for the city.