New
Build Requests in Spain up 35% in 2016
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Spain is back as carinas are springing up all over the
costa del sol again which confirms the new growth.
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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.
