Thursday 24 November 2016

New Build Requests in Spain up 35% in 2016



New Build Requests in Spain up 35% in 2016

Spain is back as carinas are springing up all over the
costa del sol again which confirms the new growth.
When the Spanish economy crashed in 2016 one industry that really felt the damage was the construction industry. The years leading to the crash saw the industry enjoy incredible success that could never last and the construction of new homes in Spain stalled following 2008 as home developers went out of business, prices collapsed, and everyone lost confidence in the industry.

The construction industry was a little slower to recover than most other sectors. As the economy and housing market of Spain began to come back to life after 2012 the country entered a buyer’s market, with the low prices of the resale sector proving to be attractive. Not to mention all the unbuilt and unwanted apartments still left in the country because of the lack of demand.

Recent years have proven to be great for the real estate sector of Spain though. This means that the construction industry has also matured and become competitive once again. There are still areas of the country that have too much construction but the areas that have always been popular with purchasers are moving past the problem.

The market has moved on so far that the latest data from the Ministry of Development shows that the amount of building license applications have increased 35% over the course of a year. The data from August shows that the amount of license requests has increased 20.2% year-on-year, with 3,291 requests made during the month.

In fact the number of building permit requests has increased each month for the past 17 months, which is a very clear indication that the construction sector has truly gotten back to work. They might not be working as much as they were before the crash, but things are moving at an encouraging pace that should be able to meet the demand of both foreign and domestic consumers.

2016 has seen around 42,869 license granted. This number might not be much higher than the amount from 2015, but there were an amazing 911,000 such requests granted in the same time period in 2006. That’s almost one million property licenses granted in just nine months.

History shows us that the demand simply could last and it didn’t take long for the bubble to burst. Everyone is moving much slower and sensibly this time around.