House prices continue to fall in Spanish market

House prices in the beleaguered Spanish property market fell during 2010, according to the results of the latest worldwide real estate report.

The Global Real Estate Trends Report, released by Canada's Scotiabank, revealed that home values in Spain along with Ireland, Italy and Japan suffered the biggest losses throughout 2010.

Average prices in Spain are likely to have been brought down by the considerable amount of distressed property which is currently available in the country at below normal market rates.

This is in contrast to the markets in Australia, Canada, France, Sweden, Switzerland and the UK, which all started on their way to recovery following the economic crisis.

The report added that overall global residential property markets "experienced a modest but uneven recovery in 2010, supported by ultra-low interest rates and gradually improving economic conditions" but "lost some steam in the latter half of the year".

Meanwhile, new figures released by Primelocation show that there has been a 43 per cent increase in the number of British property investors looking to purchase homes in Spain over the past 12 months.

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