The growth of building permits jumped to 37.8% y/y in November, according to figures of the statistical office, published on Wednesday. The significant acceleration was broad-based. The number of permits for residential dwellings increased by 31.3% y/y, with permits for all types of residential buildings on the rise. On another positive note, the number of permits for non-residential buildings also jumped to 44.4% y/y, following a decline in October. In annual terms, permits issued for office buildings increased twofold, which marks a slight deceleration on a monthly basis. Among other non-residential buildings most permits were issued for farm buildings.
In 3mma terms, building permits increased by 17.4% y/y. The growth of residential buildings picked up to 27.7% y/y, which was once again broad-based. Permits for non-residential buildings increased by 12.4% y/y, largely driven by a surge in office buildings, signaling for a rise in investment and economic activity.
All in all, the growth of building permits accelerated in line with our expectations, given the notable improvement of construction confidence in recent months. Moreover, permits for residential building are likely to continue growing, driven by favorable labor market conditions and improving conditions for household lending. In addition, given the strengthening investment activity in the country, the growth of permits for office buildings is also likely to remain stable.