Spain: Housing permits rise markedly in July, prices ease back in Q2
September 29, 2016
In July, the Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 6,267 new construction permits, according to data published by the Ministry of Public Works (Ministerio de Fomento). The figure was well above the 4,568 permits approved in June. On an annual basis, permits rose 21.2% in July, which was a significant improvement over the 0.6% increase recorded in the previous month.
As a result of the monthly figure, the moving three-month sum of permits totaled 17,920 in July, which represented a 31.2% increase over the same period of the previous year. The figure followed June’s 26.6% 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 Q2, the general index of housing prices produced by the Ministry of Public Works rose 2.0% year-on-year to EUR 1,506 per square meter. The increase followed the 2.4% rise recorded in the first quarter, which had marked the largest increase since early 2008. Nevertheless, the price per square meter is still well below the EUR 2,101 peak that was recorded in Q1 2008.
Author: David Ampudia, Economist