Commencement of Authorized Construction with a "Progressive Transformation"
2025 First Quarter Boost in Building Licensing and Completions, Focusing on Family Housing
The start of 2025 saw positive strides in the construction industry, with a significant surge in building licensing. Over 7,000 buildings were licensed, marking a 20.3% increase compared to the same time in the previous year, although slightly below the 24.1% rise in Q4 2024, as per INE data.
New Constructions: Licensing for new constructions grew by 21.3%, while licensing for rehabilitation projects jumped by 23.7%. These figures represent a considerable acceleration from the 15.7% observed in the preceding quarter.
Elements of Home: The completed buildings stood at 3.9 thousand, reflecting an annual growth of 1.1%, after a 3.6% decrease in the previous quarter. Notably, the family housing sector experienced considerable growth. New construction licensed units jumped by an impressive 36.0%, reinforcing a 23.5% increase from the previous quarter. Completed homes followed suit with a 18.4% increase, tripling the meager 11.8% uptick in Q4 2024.
Comparative Analysis: Compared to the previous quarter, the number of licensed buildings increased by 3.8%, while completed buildings fell by 3.9%.
Forecasting the Future: Trends seem to suggest an anticipated 3% growth in single-family home starts in 2025, a positive signal compared to previous years. On the flip side, multifamily starts are expected to drop by around 4%, according to industry reports.
Mortgage activity has remained resilient despite rising rates in April 2025, indicating a steady market that could impact the pace of new home completions. Positive signs persist, with sales of newly built, single-family homes showing an upward trend in March 2025, despite ongoing challenges.
In an effort to address increasing housing needs, initiatives like the American Housing and Economic Mobility Act of 2025 aim to construct nearly 3 million new housing units. Construction on projects like the Springs West Apartments in New York and the Auburn Gresham Apartments in Chicago, funded by Low-Income Housing Tax Credits, is already underway. The limited resale inventory and boosted demand for new homes create a rather promising outlook for the family housing market.
- Portugal's economic news showcases a promising future in the housing industry, with the first quarter of 2025 witnessing a surge in family housing constructions.
- The finance sector could see significant growth in Portugal as the family housing sector's new construction licensing expanded by an impressive 36.0% in Q1 2025.
