Spain: Housing permits increase notably in November
January 31, 2017
In November, the Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 5,934 new construction permits, according to data published by the Ministry of Public Works (Ministerio de Fomento). The figure was above the 5,358 permits approved in October and marked the best reading in four months. On an annual basis, permits rose a sizeable 25.1% in November, which was nonetheless a significant deceleration from the 44.8% increase recorded in the previous month.
The moving three-month sum of permits totaled 16,260 in November, which represented a 24.7% increase from the same period of the previous year. The figure followed October’s 23.4% expansion. However, the current number of permits represents a mere fraction of the 268,266 permits that were granted during the July–September 2006 peak.
In Q4, the general index of housing prices produced by the Ministry of Public Works rose 1.5% year-on-year to EUR 1,512 per square meter. The increase was a notch below the 1.6% rise recorded in the third quarter and marked the smallest expansion since Q3 2015. The price per square meter is still well below the EUR 2,101 peak that was recorded in Q1 2008.
Author: David Ampudia, Economist