Madrid is one example of this, where values fell by 4.1 per cent on an annual basis, although there are other European markets that have taken a bigger hit.
In Paris, Monaco and Rome, the cost of purchasing a prime residential asset fell by 4.5 per cent, 5.3 per cent and 5.8 per cent respectively during the same period.
Globally, property in Madrid also outperformed destinations such as Sydney, Singapore, Shanghai and Tel Aviv, the research revealed.
Investors looking for an opportunity to purchase real estate assets in the Spanish capital may be interested in the regional government's decision earlier this month to offload some of its commercial premises.
Speaking to Bloomberg Businessweek, head of research and investment strategy at Tristan Capital Partners Simon Martin said the properties will need to be "high quality and very cheap relative to price levels elsewhere" to attract international buyers.