Average declines of 3.2% seen in Spanish property market

Investors looking to buy property in Spain will be interested to learn that the cost of a new home in the country fell by 3.2 per cent over the course of 2010.

This is according to a new report by the Sociedad de Tasacion, which said that the average price of real estate ended the year at EUR 2,476 per square metre.

Split into separate provinces, the organisation explained that prices dropped in 46 provincial capitals, increased in three (Lugo, Palencia and Pontevedra) and did not vary in one (Ourense).

The biggest drops by region were in Aragon (-5.8 per cent), Extremadura (-5.2 per cent) and the Balearics (-4.6 per cent) respectively.

Meanwhile, the smallest falls were recorded in the regions of Galicia (-0.7 per cent), Asturias (-1.4 per cent) and Navarra (-1.5 per cent) over the course of the year.

The news follows comments from the Central Bank in Spain which has predict that prices in the country will continue to fall in the New Year thanks to a glut of unsold housing.

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