Spain: Housing permits increase notably in September, rise in prices slows further in Q3
November 30, 2016
In September, the Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 4,968 new construction permits, according to data published by the Ministry of Public Works (Ministerio de Fomento). The figure was well above the 3,291 permits approved in August. On an annual basis, permits rose 8.1% in September, which was a significant slowdown from the 20.2% increase recorded in the previous month.
The moving three-month sum of permits totaled 14,561 in September, which represented a 16.4% increase over the same period of the previous year. The figure followed August’s 13.5% 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 Q3, the general index of housing prices produced by the Ministry of Public Works rose 1.6% year-on-year to EUR 1,500 per square meter. The increase was below the 2.0% rise recorded in the second quarter and marked the smallest expansion in a year. The price per square meter is still well below the EUR 2,101 peak that was recorded in Q1 2008.
Author: David Ampudia, Economist