This is according to a new report compiled by Idealista.com, which analysed more than 320,000 resale properties across Spain in order to gain a comprehensive picture of the current market.
After gathering the information together, the organisation highlighted that Spanish housing resale prices have tumbled by 10.2 per cent on average in 2012.
Those hoping to buy property in Spain will be intrigued to hear though that the price per square metre now sits at €1,873 (£1,521).
In total, 86 per cent of the country's municipalities witnessed a fall in house prices throughout the past year, with the biggest decreases recorded in the Balearic Islands. Here, the average price for property dropped by 12.4 per cent during 2012.
When it came to the state of Spain's provincial capitals, Huesca witnessed an 18.3 per cent decrease in house prices, with Guadalajara faring similarly with an 18 per cent fall. In fact, only Pontevedra remained on a positive path, by actually recording a 1.4 per cent increase in resale price.
Following the changes in resale prices across Spain, San Sebastian has regained its position as the country's most expensive provincial capital, at €4,092/m2.
Bilbao came in second in these particularly rankings, at €3,296/m2, followed by the popular regions of Barcelona (€3,217/m2) and Madrid (€3,209/m2).
At the other end of the scale, lleida has now emerged as the cheapest provincial capital for property, with prices now averaging at €1,056/m2.
The research follows on from claims by Barbara Wood, of Andalucia-based The Property Finders, that people were becoming more realistic when it came to selling property in Spain.
She told Property Wire: "A real feature of 2012 was the increasing number of Spanish sellers finally coming out of denial and accepting offers they were previously turning down."