Delays in getting licenses affect employment and the economy

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Real estate agents and architects warn that the delays in the acquisition of building permits and licenses of first occupation are negatively affecting the economic development of the country and job creation.

Associations from the real estate and architectural sector note that the delay and backup in granting of permits causes a delay in construction, with a consequential increase of costs which end up raising the price of housing. The delays in building start-ups also hurt job creation in the sector.

Currently, the estimated time to receive a building permit is around one year, when it had been between two and three months. As for licenses of first occupation, the estimated time is between four and six months. Far from being streamlined, the tendency is for these periods to increase. The main consequences of the postponement are the revision of delivery times from construction companies and the increase in housing costs.

So why are these times so long? Lack of personnel in the Public Administrations makes it impossible to serve all the requests for permits on time. The disparity of criteria among technicians when it comes to interpreting planning standards also affect the correct operation in granting of building permits. The Architects Association of Madrid (COAM) cautions about the need to increase the means and personnel in city halls as well as simplify regulations and unify criteria in order to change the situation.

In addition to the increase in housing costs and the lack of hiring of personnel derived from the delay in starting new constructions, the COAM also warns that some people will be tempted to act outside the law and start projects without having obtained the pertinent permits.

The Association of Property Developers, Asprima, proposes that the use of software tools by the Administration could greatly speed up the work of their personnel and decrease the time in granting building permits.

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