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