Retour Building permits in the EU: signs of recovery?

3 juillet 2017

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The index of building permits acts as an early warning indicator for an impending economic crisis. In both the European Union (EU) and the euro area, the so-called "floor area index", meaning the usable floor area included in building permits, nearly halved between 2007 and 2009. This fall was notably triggered by the collapse of the construction sector in Spain and Ireland. After a short period of stability in 2010, the index continued to fall and reached its lowest point in 2014.

Since then, the floor area index of building permits has shown signs of recovery, with a 26% rise in the EU and a 24% growth in the euro area from 2014 to beginning of 2017.

Floor area index of building permits in the EU and the euro area

The source dataset can be found here.

 

Highest growth in building permits over last 3 years in Hungary, Malta and Spain

The floor area index of building permits increased in a large majority of the EU Member States between the first quarter of 2014 and the first quarter of 2017. Over that period, the highest increases were recorded in Hungary (+181%), Malta (+165%), Spain (+136%), Estonia (+106%) and Ireland (+99%). Growth rates of at least 50% were also registered in Lithuania (+59%), Sweden (+57%), the Netherlands (+52%), Bulgaria (+51%) and Cyprus (50%).

In contrast, Latvia (-49%) and Belgium (-30%) recorded the largest falls in the floor area index between the first quarters of 2014 and 2017. They were followed by Denmark (-8%), Greece (-7%) and Romania (-6%).

 

For more information

Eurostat website section dedicated to short-term business statistics.

Eurostat database on short-term business statistics.

Eurostat Statistics Explained article on construction permit index overview.