Residential planning approvals in Spain (excluding social housing) decreased by -70% to 19,844 in Q2 2009 compared to the same time last year, according to Spain’s College of Architects.

Over 12 months to the end of June, planning approvals were down by -70% to 108,120 compared to the previous 12-month period. Planning approvals are the pipeline for the residential building industry, so these figures are disastrous for the sector and the Spanish economy. Now banks have turned off the tap, which helps to explain why planning approvals have collapsed.

Gonzalo Bernardos, a housing market expert at the University of Barcelona, told the Spanish press: “This has been the year of refinancing for developers, but banks are not offering funding to start new developments, just to finish those already being built.”

Source: Property Investor News

The amount of newly constructed real estate apartment blocks across Bulgaria increased by +24.1% in the second quarter of 2009, according to the National Statistics Institute (NSI) data.

The statistics show that, on an annual basis the growth of buildings completed accounts for 6.9%, while the increase of new apartments has grown by +30.2%. For the period May to July 2009, 679 properties were erected with 5,888 flats in total. For that period alone, there is a +51.1% increase in new apartments nationwide.

Varna led the way with 157 new buildings constructed, with a total of 1,204 new units, followed by Bourgas who had 134 buildings recently constructed making a total of 1,665 new units and Sofia with 35 new buildings recently constructed as well as 549 new apartments. The report indicated that there was no new construction in the towns of Razgrad, Montana and Haskovo in the same period.

The figures indicate that the total new marketable area consists of more than 411,000sqm of apartment space, or a +15.9% increase compared to the corresponding period for 2008. However, according to the report, on average, flats are becoming smaller. In the first quarter of 2009, the average living area in new construction amounted to 75.5sqm, which in the second quarter decreased to 69.9sqm.

Source: Propertywire.com