New Home Completions have increased by 15.5% this year so far!
According to recent data published by the Spanish Government’s Ministry of Public Works, a total of 7,326 new homes were completed in Spain in the first two months of this year. This figure represents an increase of 15.5% compared with the number of home completions registered in the same period of last year, which reached a total of 6,342.
Thus, this latest data on the number of homes completed in Spain gives a positive start to 2016, after 2015 closed accumulating eight consecutive years of declines. Since the peak levels of 2007, when some 641,419 new homes were completed during that year, the figure has decreased by 93% compared to the close of 2015, when the total was 45,152.
Building Licences for New Homes have Climbed by 57% so far this year!
In the first three months of this year the number of licences authorised for the construction of new homes in Spain reached a total of 16,782, which represents an increase of 57.1% compared to the same period of 2015, when only 10,682 permits were granted. According to data from the Ministry of Public Works, this is the best figure recorded since the first quarter of 2011, when the number of building permits reached a total of 21,953.
Of the total number of building permits requested between January and March, some 74% related to the construction of new apartments in blocks, with a total of 12,425 units and an increase of 64.7% over the same period of last year, while there were 4,356 permit applications for single family homes, which is 39.2% more than the previous year. Thus, the latest data shows that the first quarter of the year confirms the path of recovery in housing construction, following the 42.5% increase in building permits in 2015, which came after 2014 broke a run of seven consecutive years of negative results by registering growth of 1.7%, to reach a total of 34,873 permits issued.
The data also shows that the size of these new homes has grown, with the average size of a family home standing at around 203.6 square metres, while the average apartment size stood at 118 square metres (114 metres in the same quarter of 2015).
House Prices have increased by 2.4% in the First Quarter of 2016!
According to data published by the Ministry of Public Works last week, the average price of housing in Spain stood at 1,492.4 euros per square metre in the first quarter of 2016, which represents a quarter-on-quarter rise of 0.2% and a year-on-year increase of 2.4%.
In real terms, discounting inflation, the average price of homes in Spain experienced year- on-year growth for the sixth consecutive quarter, reaching an annual increase of 3.1%.
Foreigners Invested 741.6 Million Euros for Golden Visas
Now’s the time to Apply!
The Entrepreneur`s Law in Spain has benefited from investment amounting to some 741.6 million euros from foreigners acquiring a home in Spain for more than half a million euros, in order to obtain a ‘Golden Visa’. In this regard , the Spanish Government had granted 11,411 new residence visas.
The extensions made by the Government to boost capital inflows and foreign investment, through the Second Opportunity Act, has resulted in an increase in ‘Golden Visa’ requests over the past year. These changes have allowed investors to not only gain a residence permit but also obtain the right to work, while their relatives could obtain residency in Spain.
All these facts and figures point to an ongoing strong recovery in today`s housing market, making now the perfect time to invest in a “new contemporary home”.