Spanish properties to become more affordable

Investors may be interested in reports that Spanish house prices are likely to fall again in 2010.

The news, which was reported by Reuters, may interest those looking to invest in the country as there will be greater opportunity to pick up a bargain.

Jose Manuel Campa, Spain's economy secretary, said that buyers are likely to be encouraged by property prices which are estimated to be similar to 2005 levels.

Government data showed that last year, house prices fell six per cent in the country thanks to the global economic crisis.

"In Spain, property values have still not adjusted to the reality of the market. We think 2010 will be the year prices will adjust," Javier Garcia-Mateo at property consultants Aguirre Newman told the news provider.

Last week the GBP reached its highest point against the euro since August 2008, making eurozone countries such as Spain more affordable.