During At least 442 housing projects will be built by 2024equal to the sum of 15,979 housesCompiled by the major real estate platform Brains Real Estate, taking into account building permits issued by different local authorities spread across Spain. We also need to add to this figure the permits given by municipal councils during the year.
In 2023, by November and on the territory of Spain, the Ministry of Housing and Urban Agenda is expected to publish final annual data 100,582 work visas, a number very close to 2022 This target is expected to be achieved this year as well.
Different studies suggest that councils will allow the construction of around 110,000 new homes in 2024, with slight growth of 1.5% for 2023 and this year. According to the latest ‘Real Estate Observatory’ published by BBVA, the figures obtained so far are “a positive surprise compared to expectations at the beginning of the year”. The bank hopes that The number of visas will increase again as of 2025In the Eurozone, the excitement of the recovery, which is expected to increase by 15 percent to 130 thousand, continues.
There are headwinds in new construction because the building permits issued less than demand available. Alejandro Aguirre, CEO of Brains Real Estate, points out: “We have seen a significant decline in demand in the corporate market in 2023, but supply has also fallen in the residential sector, and demand continues to comfortably exceed supply in new construction. New in 2024, according to Brains Real Estate data We can see where construction will start: these are places where demand, cities and coasts, coincide with the availability of finalist land. This coincidence is relatively limited, so we see: HE Sunday Will continue to support new construction prices in 2024“.
By community and state
Community of Madrid leads undergraduate rankings Work was awarded for 91 projects and 6,220 projects that will start to be built in 2024. Behind them are Catalonia with 3,381 new properties, Andalusia with 1,823 new properties and the Valencian Community with 1,339 new properties. On the opposite side are La Rioja, Cantabria and Castilla-La Mancha, where there are fewer than 100 homes ready to start construction.
The situation is similar at the provincial level. Excluding the capital, the main regions where new housing will soon be built are Barcelona (3,129), Valencia (707), Alicante (631), Córdoba (581), Vizcaya (506), Seville (494), Badajoz (480), Malaga (442) , Cádiz (295) and the Balearic Islands (289). In provinces like the opposite Guadalajara, Huesca, Lleida, Palencia or Soria construction was not allowed no new propertyAccording to Brains Real Estate.
low supply
According to CaixaBank Research’s latest forecast study, Housing supply is very limited and insufficient to meet needs given demographic development. “The number of new construction visas continues to be much lower than net household creation,” he notes.
The financial institution’s economic research department argues that this demand has increased due to a significant increase in the population coming from abroad, by 600,000 people in one year, a growth not recorded since the immigration ‘boom’. The first decade of the 21st century. “The fact that this population generally prefers to establish their residence in urban areas or tourist areas where economic activities are concentrated, partly explains the stronger housing prices in these areas,” they explain.
In the short and medium term, Housing supply is not expected to increase. According to the project promoters, there is currently neither sufficient final (construction-ready) land nor a construction industry to support the development of new supply.
Source: Informacion
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