Spain: Housing permits plummet in March; housing prices tick up in Q1
May 28, 2020
The Spanish Board of Architects approved 5,956 new construction permits in March, according to data published by the Ministry of Public Works. The figure was well below the 9,405 permits granted in March 2019 and the 9,806 permits granted in February. On an annual basis, permits collapsed 36.7% in March, following February’s 1.0% slip and marking the third consecutive month of decline.
Meanwhile, the moving three-month sum of permits totaled 23,418 in March, which represented a 16.0% plunge from the same period in 2019 and followed the 2.1% drop recorded in February.
In Q1 2020, the general index of housing prices produced by the Ministry of Public Works edged up 0.3% year-on-year to EUR 1,640 per square meter. The increase was below the 2.1% climb logged in the final quarter of 2019 and marked the softest increase in five years. The price per square meter is well below the EUR 2,101 peak that was recorded in Q1 2008.
Author: Javier Colato, Economist