Spain: Housing permits and prices continue to decline
January 17, 2011
In October, the Spanish Board of Architects (Colegio de Arquitectos Tecnicos) granted 8,442 new construction permits, according to data published by the Development Ministry (Ministerio de Fomento), which is down from the 10,523 permits approved in September. As a result, the 3-month moving sum totaled 26,013 permits in the period ending in October, which represented a 15.8% contraction compared to the 30,902 permits approved in the same period 2009. At the current level, permits are only a fraction of the peak of 279,070 permits, which were granted in July-September 2006. Meanwhile, the general index of housing prices, produced by the Development Ministry, showed a 3.5% drop in housing prices in the fourth quarter of 2010, dropping further from the 6.3% fall observed in the previous quarter. At the current level, the price per square meter reached EUR 1,826 in the Q4 2010, well below the peak of EUR 2,101 per square meter observed in Q1 2008.