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New construction grows by 6%, the second best figure in the last decade

In 2023, Spain shows a mixed outlook in the real estate sector. Despite a decrease in sales, the country has experienced a 6% increase in the issuance of visas for new-build homes during the first semester, according to the latest data from the Ministry of Transport, Mobility and Urban Agenda (MITMA). During the period from January to July, a total of 81,388 new construction visas were registered, this being the second best figure of the last decade, only surpassed by the 87,893 visas accumulated in the same period in 2019. This represents an increase of 4.4% compared to the previous year, and 4% more compared to the average of the last five years.

Within these indicators, it is noteworthy the 13.5% increase in the authorization of visas for the construction of apartment blocks, reaching a total of 51,717 units. On the other hand, visas for single-family houses have experienced a decrease of 8.8%, standing at 14,311 units. 

Of all the homes authorized in the first seven months of the year, 66,063 correspond to new residential units, 1,582 are for the expansion of existing homes, and 13,693 for renovations or restorations. Although the number of visas for new-build homes is 15.2% lower than in the same period of 2022, it remains 2.5% above the average of the last five years. It is estimated that a total of 113,250 visas for new construction housing will be reached by the end of the year.

On the other hand, the buying and selling operations have experienced a decrease of 10.5% in July, according to INE data. This negative trend has been registered since February, accumulating six consecutive months of setbacks. However, experts relate this fall to the stabilization of the market after the boom it experienced for almost two years after the end of the pandemic. In July, for example, a total of 48,303 homes were sold, a figure lower than that recorded in 2022 and 2021, but very similar to that of 2019. In addition, the data for July show that the correction is taking place mainly in the second-hand market, which was the most affected by the increase in demand after the pandemic.