Average property prices in spain still falling but luxury locations doing well

Average residential property prices in Spain have fallen by 7.4% in the 12 months to the end of September, according to the latest House Price Index from Tinsa, one of Spain’s leading appraisal companies.

The steepest price falls were in large cities where they declined 8.9%, followed by the Mediterranean Coast where most overseas buyers have holiday homes. Peak to present, prices are down on average 24.1% and by 31.9% on the Coast.

But there is an increase in foreign buyers, perhaps keen on seeking out bargain prices in some parts of the country. Figures from the Bank of Spain show that foreigners invested €1.3 billion in the second quarter of this year, up16% on the first quarter and 37% compared with the same time last year.

Foreign investment is still some 32% down on the peak of the buying market in the second quarter of 2003 when it reached €1.9 billion, but there has been a clear improvement in the last two quarters.

Source: PropertyWire.com