Spanish prices down 20% y-o-y

Residential prices in Spain were five per cent lower during January than compared to one year ago, the latest real estate price index has revealed.

However, the Tinsa Index shows that home values in the country are now almost 20 per cent below their peak values seen in 2007.

Mediterranean coastal areas, which tend to be where foreigners buy property in Spain, have done significantly worse than the national average, with prices down 8.4 per cent year-on-year (y-o-y) and 27.2 per cent since their peak.

Meanwhile, the latest statistics from the country's National Statistics Institute has revealed that the Balearic property market is performing better than the rest of Spain, recording positive growth of 18.4 per cent compared to the previous year.

"We have registered a marked increase in new clients and inquiries in the last three months, compared to last year at this time," said Jan Pratt from Shortcuts Property Search.

"Confidence seems to be growing and buyers who were waiting for the market to bottom out are now returning."

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