Spanish house prices fall in July

The latest figures published in the General Spanish Real Estate Market Index (IMIE General) reveal that house prices in the nation fell in July.

Overall, the country experienced a year-on-year decline of 6.4 per cent, although this was more pronounced in some regions than others.

Properties on the Mediterranean coast took the biggest hit, dropping by 9.5 per cent in July compared to the same month in 2010.

At the other end of the scale, the Balearic and Canary Islands saw real estate values fall at a slower rate, recording just a 2.5 per cent reduction in the same period.

Managing director of Mallorca Sotheby's International Realty Stephen Dight explained that one reason for this improvement away from the mainland is that there are not the same oversupply issues with housing.

He added that another thing in favour of Mallorca's property sector is that there are many Germans, as well as Brits, who have purchased a home here. Mr Dight pointed out that as the recession in Germany "is behind them" people are not as eager to sell up, which has kept available real estate at a steady level.
 

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