Spain: Housing market continues to deteriorate
July 28, 2011
In May, the Spanish Board of Architects (Colegio de Arquitectos Tecnicos) granted 6,516 construction permits, according to data published by the Ministry of Public Works (Ministerio de Fomento), which is up from the 5,922 permits approved in April. On an annual basis, permits dropped 22.6%, confirming the feeble condition of the housing market. The moving 3-month sum totalled 19,424 permits in the period ending in May, which represented a 25.6% drop compared to the 26,113 permits approved in the same period last year. At the current level, permits are only a fraction of the peak of 268,266 granted in the July-September period of 2006. Meanwhile, the general index of housing prices, produced by the Ministry of Public Works, dropped 5.2% in the second quarter of 2011 over the same period last year, falling faster than the 4.7% decline observed in the previous quarter. At the current level, the price per square metre reached EUR 1,752 in Q2 2011, 16.6% below the peak of EUR 2,101 per square metre observed in Q1 2008.