Spanish property prices fall for 12th consecutive quarter

Demand for property in Spain could be set to rise after it was revealed that house prices in the country have fallen for the 12th straight quarter in the final three months of 2010.

According to Reuters, home values dropped 0.1 per cent quarter-on-quarter, the national statistics institute INE said yesterday (March 16th).

It has been reported that there are well over a million unsold properties in Spain at the moment, a figure which equates to approximately 20 per cent of Spain's total housing stock.

The national statistics institute noted that the decline in values was the smallest drop that has been registered since property prices began their steady freefall in the final quarter of 2007.

It was also significantly less than the 2.2 per cent reduction seen in the third quarter of 2010.

"Despite recent indicators suggesting that the rate of decline in housing activity has been stabilising, the fundamentals point to weak activity across the sector," Raj Badiani, economist at Global Insight, told the news provider.

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