Housing approvals rise in Spain y-o-y

The number of approvals for new homes in Spain increased by seven per cent in January compared to the previous year, the latest statistics have revealed.

According to figures released by the Spanish government, there has been an increase in the number of housing developments year-on-year.

However, the level of planning approvals in Spain fell by 15 per cent to 6,784 compared to December - an indication that the market is still not in the full throes of recovery.

Mark Stucklin, of Spanish Property Insight, is more upbeat about the long-term chances for the Spanish property market, forecasting that building activity will increase this year.

"In my opinion, 2011 will mark the bottom of the cycle for planning approvals, though I should stress that is just a hunch. If it is not this year it will be next year, so it’s not as if I’m taking a wild guess," he said.

It follows comments from European finance minister that Spain is not expected to follow in the footsteps of Portugal and seek financial aid.

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