Investment in construction up 3.5% in 2021, new homes licensed highest since 2008

Investment in construction increased by 3.5% in 2021, accelerating from 1.6% in 2020, with licensing of new homes and new loans for home purchases reaching maximums since 2008 and 2007, respectively.

In a statement released Wednesday, the Association of Civil Construction and Public Works Industries (AICCOPN) reported that last year, total licensing of construction and rehabilitation work increased 7.7%, with increases of 9.8% in residential buildings and 2.3% in non-residential buildings.

New housing licenses saw a rise of 11.1%, to 27,805, “the highest number since 2008”.

In terms of the volume of new loans granted to individuals for house purchase, it rose 34.1% last year, year-on-year, totalling €15.270 billion, “which corresponds to a maximum since 2007”.

According to AICCOPN, the sector maintained this “positive trajectory” in January 2022.

Thus, the value of residential property analysed by the median value of bank appraisals carried out within the scope of mortgage lending maintained the growth trend, with a valuation of 10.4%, year-on-year, to €1,292 per square metre (m2).

In the public works market, January saw a 7% year-on-year increase in the volume of public works tenders.

With regard to the total amount of public works contracts concluded and registered in the Base Portal, the year-on-year change in temporally comparable terms was -61%. AICCOPN notes that, “although it is only a monthly record, the figure is the lowest since March 2016”.

Regarding cement consumption in the domestic market, after an increase of 5.8% in 2021, January 2022 saw a “significant growth” of 13.9%, year-on-year, to 298,500 tonnes.