New Home Construction Plummets 43% to November

Building permit applications for the construction of new homes totalled 41,606 units in the first eleven months of 2012, representing a decrease of 42.9% over the same period of 2011, according to data from the Ministry of Development.

If the building permit applications for the month of December remain at the same level as the rest of the year then 2012 will close with a new record low in the construction of new homes, with some 45,400 units.

This annual volume represents a decrease of 42% compared to the already record minimum of 78,286 permits counted at the end of 2011.

Moreover, the 2012 figure will be only a nineteenth of the all-time high registered for building permits in the full boom of the sector in 2006, of 865,561 units, and accumulates six consecutive years of declines in the construction of new homes.

Regarding permit applications to November, El Economista reported that 67% were for blocks of flats (27,939 units) and the rest (13,557 units), were for family homes.

The Ministry of Development’s statistics also reveal that in the first eleven months of 2012, 21,687 applications were made for housing reforms, which is down 26% compared to a year earlier, while the 2,341 applications made for home extensions represented a decline of 14.6%.