Construction of New Homes Closed 2012 at Record Low
March 5th, 2013
The number of building licence applications for the construction of new homes in Spain totalled 44,162 units in 2012, representing a drop of 43.5% compared to 2011, and set a record low, according to the Ministry of Development.
Thus, the number of building permits authorised to build new homes has accumulated a contraction of 95% in the six consecutive years of declines since the pre-crisis period of 2006.
El Mundo reported that residential development business last year was reduced to one-fifth (20%) of what it registered in 2006, in the boom of the real estate sector, when the number of applications to build new homes reached 865,561 units.
With regard to the building licence applications made in 2012, 67% of them (29,611) corresponded to apartment blocks, representing a drop of 49.2% compared to 2011. The remaining 14,515 applications were for building houses (-27%).
Moreover, the Ministry of Development statistics reveal that the number of applications for permission to extend or reform housing also fell in 2012.
Specifically, the report notes that 23,007 applications to reform residences were made in 2012, representing a decrease of 19.6% compared to a year earlier. As for the number of applications for extension projects, these also fell last year by 15.8%, and totalled 2,487 applications.
- New Home Construction Plummets 43% to November
- Building Permits for New Homes Fell by 43.3% to September
- Construction Down 32.6% to May