Financial distress in real estate companies rose 24% to 227 cases nationwide in Q1 2013 compared with the same period last year, according to insolvency specialist Begbies Traynor.

The increase contrasts with the construction sector, where there was a near 50% drop in critical financial distress from 1,212 cases in Q1 last year to 630 in the first quarter of 2013.

Begbies added that the continuing lack of funding for the important SME sector was a growing concern. Begbies found the number of SMEs that had secured new funding in the first quarter was 15,804, down 14.5% from 18, 943 in the first quarter 2012.