Average prices in Spain fall in Q3

Average home prices in Spain have fallen during the third quarter, the latest figures from the National Statistics Institute show.

The body explained that values fell by a total of 2.2 per cent in the three months to the end of September meaning that over the year-to-date a 1.8 per cent reduction has been recorded.

Following the collapse of Spain's property boom in 2007, there has been an abundance of reduced real estate available, including a large number of distressed properties.

Spain remains the most popular destination for individuals looking to buy property abroad, according to a recent survey by the Worldwide Property Group.

Commenting on the survey, Kevin Wilkes, managing director of the organisation, said: "Around the world many locations such as Spain and the US now offer rock bottom prices, leading to resurgence in their popularity with buyers."

Meanwhile, a recent poll conducted by Reuters found the majority of analysts believe house prices will not stabilise in Spain until 2012.

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