Spain’s Housing ‘Stock’ at 25.3 Million

The housing stock in Spain stood at 25.382 million units at the end of 2012, representing an increase of just 0.5% compared to the previous year, its lowest annual growth in the last decade, according to recent data from the Ministry of Development.

71.3% of the housing stock corresponds to primary residences, totalling 18.11 million units and an increase of only 0.11% over 2011.

The stock of second-homes registered a greater increase, of 1.7%, and closed 2012 with a total of 7.27 million units, representing 28.7% of the total.

Since the beginning of the crisis in 2008 until the end of 2012, Spain added 1.35 million units to its housing stock, only half compared with the 2.55 million homes that were added in the five preceding years, which coincided with the boom in the sector.

During these years, Spain’s housing stock total grew at annual rates of up to 2.5%, which contrasts with the increases of between 0.5% and 1.3% experienced since the outbreak of crisis.

In the whole of the last decade (2002-2012), the housing stock has increased by a total of 4.35 million units, rising from the 21.03 million homes registered at the end of 2001, to 25.38 million at the end of 2012.

Four regions account for more than half of the country’s total housing stock (56.5%). They are: Andalusia; Catalonia; Valencia and Madrid.

Andalusia has 4.4 million unsold homes, while Catalonia has a total of 3.88 million, Valencia has 3.15 million, and Madrid, 2.9 million.

The regions with lower totals of housing stock are La Rioja, with 200,183 homes at the close of 2012, Navarra (312,305 homes) and Cantabria, (360,627 homes).

According to the Ministry of Development data, 30,384 home constructions were completed in Spain in the first five months of 2013, which represents a decrease of 38% compared to the same period in 2012 (49,021), and maintains the negative trend of recent years. In 2012, the decrease was 28.4% (with 120.206 units), accumulating five consecutive years of falls. Since the peak recorded in 2007, with 641,419 homes completed, the market has dropped by 81%.

Of the total homes completed in the first five months of 2013, 99.2% (30,116) were for private developers and 0.8% (268) for public administration.

El Mundo reported that, compared to 2012, housing construction by private developers fell by 37.4%, and public administration fell by 69.5%. In the private sector, 17,623 units were for corporations, with a decrease of 39.2%, 9,858 for individuals and communities of owners (-28.6%), and 1,811 were for cooperatives (-48.3%).

In addition, there were 824 completion certificates for other private promoter projects, while the liquidation value of the material execution of the works fell by 33.7% to 3,699.1 million euros.