Prices falls look set to continue in Spain

Overseas and domestic buyers looking to buy property in Spain may be interested in the recent predictions offered by the Bank of Spain.

According to the financial institution, the current fluctuation in home values in the country could be set to continue.

The bank explained that the Spanish economy could be held back for years as a result of the high mortgage debt burden. House prices have fallen 17 per cent since late 2007, the Bank of Spain said.

Additional reports suggest that there are over one million unsold homes currently in the country.

"Looking at previous cycles, the experience of other countries, and indicators of affordability, the adjustment in housing prices could continue," the central bank said in its monthly report in December.

However, a number of real estate portal have reported that enquiries for property in Spain have risen over the past few months, suggesting that cash-rich buyers are looking to take advantage of the current low prices.

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