Dand according to the housing statistical summary of the Association of Civil Construction Industries and Public Works (AICCOPN) published today, municipal permits for new construction and renovation of residential buildings have reversed the previously recorded downward trend and , at the end of September, recorded growth of 2.3% year over year.
As regards the granting of licenses for newly built apartments, “despite the recovery, there is still a decline of 1.4% in cumulative annual terms, for a total of 24,611 homes”.
Until September,also according to AICCOPN data,cement consumption in the national market recorded an annual increase of 2.6%, reaching 3,033 thousand tonnes.
As for the amount of new real estate loans granted by banks, excluding renegotiations, up to September it amounted to 12,311 million euros, which corresponds to a “significant increase on an annual basis” of 34.7%.
As regards the average value of homes, calculated for bank valuation purposes, in September it recorded an recognition of 10% on an annual basis, following changes of 10.2% in apartments and 8.6% in houses.
analyzing the evolution of the Northern region in more detail, the AICCOPN reports a 3.6% increase in the number of homes granted in new buildings in the 12 months ending in September, to 15,003, compared to the 14,482 homes granted in the previous 12 months.
As regards the estimated value of homes by banks, in this region an annual variation of 10.9% was recorded in the month of September.
How should potential home buyers approach the market given the recent changes in construction permits and home values?
Interview with Maria Santos, Housing Market Analyst
Time.news Editor: Today, we have Maria Santos, an expert in housing market trends and analysis, joining us to discuss the recent data released by the Association of Civil Construction Industries and Public Works (AICCOPN). Welcome, Maria!
maria Santos: Thank you for having me. I’m excited to delve into this important topic.
Time.news Editor: Let’s start with the most striking statistic from the AICCOPN report: municipal permits for new construction and renovation are up 2.3% year-over-year. What does this growth indicate about the current state of the housing market?
Maria Santos: This growth suggests a positive turnaround for the housing market, indicating renewed confidence among developers and investors. It marks a shift away from the previous downward trend,signaling that there’s an increasing demand for both new constructions and renovations in residential buildings.
Time.news Editor: While the overall permits have grown, there’s still a decline of 1.4% in newly built apartments,with 24,611 homes recorded. How should we interpret this mixed picture?
Maria Santos: It’s an engaging juxtaposition. The growth in overall permits shows optimism, but the decline in newly built apartments reflects a certain caution among developers. Factors like rising construction costs and potential oversupply in some areas may be causing developers to hesitate on new apartment projects. This could be an prospect for investors to seek properties in the renovation segment instead.
Time.news Editor: Cement consumption has also risen by 2.6%, reaching over 3 million tonnes. What does this imply for the construction industry moving forward?
Maria Santos: Increased cement consumption often correlates with higher construction activity. This is a bullish sign for construction companies and material suppliers, suggesting that the industry is gearing up for more projects. Moreover, it illustrates the ongoing investment in infrastructure and housing as part of economic recovery efforts.
Time.news Editor: In terms of financing, new real estate loans have seen a substantial increase of 34.7%, amounting to 12,311 million euros. What does this suggest about consumer confidence?
Maria Santos: This significant uptick in new real estate loans indicates robust consumer confidence. It shows that people are looking to invest in properties, which is essential for sustaining the housing market’s growth. The willingness to take on loans also suggests an expectation of continuing property value appreciation, which we see reflected in the average home values increasing by 10% year over year.
Time.news Editor: Speaking of home values, various regions are seeing different trends. the Northern region experienced a 3.6% increase in new building permits. What factors do you think are influencing this regional growth?
Maria Santos: The growth in the Northern region can be attributed to several factors, including urban development plans and population growth in cities like Porto. The 10.9% annual increase in estimated home values further reinforces the area’s appeal, indicating that buyers see value in these investments. As businesses and amenities expand,the attraction for residential properties will likely continue to rise.
Time.news Editor: As we conclude, what practical advice would you offer to potential home buyers and investors based on the current data?
Maria Santos: For buyers and investors, it’s crucial to stay informed about market trends and regional dynamics. While demand is rising, carefully consider your budget and financing options before committing to a purchase. Given the increased values and the variance in construction trends, seeking properties that require renovation could be a wise strategy to capitalize on the existing growth while perhaps lowering initial costs.
Time.news Editor: Thank you, Maria, for sharing your insights! Your expertise will surely help our readers navigate the evolving housing market landscape.
Maria Santos: Thank you for having me. It’s been a pleasure discussing these critical developments in housing!
