Planning applications for new build fell between 2011-2023

Planning applications for new build construction works suffered a slight downward trend between 2011 and 2023, creating asymmetrical pressure on the coast and metropolitan areas, according to a study released by the INE.

According to the report ‘Pressure in Construction 2011-2023’ in which the statistics institute carried out a study on construction in Portugal between 2011-2023, the construction potential of the period was 5.4%, measured by the number of new homes with planning permission compared to the total number applications for works on existing properties in 2011.

In a cross-region analysis, only the North of Portugal, Madeira and the Azores exceeded that percentage, with 7.3%, 6.8% and 5.8% respectively.

The most dynamic areas in terms of construction in the North were seen in Cávado (9.7%), Ave (8.9%), the Porto Metropolitan Area (7.4%) and in the areas of Tâmega e Sousa, and the Alto Minho (both with 7.2%).

According to the statistical institute, in Cávado and the Porto Metropolitan Area, the growth in construction coincided with the increase in the resident population between 2011 and 2023 (+4.8% and +2.5%, respectively).

Between 2011 and 2023 planning permission for works saw a “moderate downwards trend” in the number of buildings and floors, with average annual growth rates of -0.6% and -0.5%, respectively.

Most regions contributed to this decrease, with the exception of the Setúbal Peninsula, Greater Lisbon and the Autonomous Region of Madeira, where the licensing of buildings and apartments registered positive average annual growth rates of 5.5% and 6.2%, 1.3% and 2.0% and 0.9% and 1.6%, respectively.

There was a slight reduction in the height of new apartment blocks going from 1.8 floors per building in 2011 to 1.7% floors per building in 2023.

Data from the INE showed that new build predominated when it came to planning permission licences in Portugal for the period.

The only exception was between 2012 and 2014 when licences for refurbishment and rehabilitation works exceeded planning applications for new build.

In total, rehabilitation works recorded a growth trajectory between 2011 and 2012, the year in which they reached the highest value of the period under analysis, with 60.2 licenses for every 100 new constructions. In 2023, this indicator stood at 30.3.