Figures released by Tinsa, one of Spain's leading valuation companies, have shown that prices across Spain have fallen over the last 12 months, with prices on the Costas falling a almost double the national average. The current economic crisis, plus the glut of unsold flats in Spain's cities, has led to a massive downturn in property prices in the country.
The Costas were the worst affected, according to the latest index of Spanish property prices. Prices on the Spanish Mediterranean coast fell by 8.3 per cent over the last 12 months, compared to a drop of 4.6 per cent for the whole of Spain.
Property prices in the suburbs of Spain's biggest cities, where the bulk of the country's mass of unsold flats is located, fell by 7.1 per cent.
Developers are also reporting cash shortages because of a dip in off-plan sales -that is, properties sold before they have been built.
Mainland Spain is far worse affected that the Spanish islands - according to
Tinsa's report, prices on the Balearic and the Canary Islands only fell by only 3.8 per cent.
Despite these price drops, industry experts feel that Spain still offers a safe investment potential due to its stable economy, unlike many emerging markets which have attracted much interest from property investors over the last few years.
Twenty seven per cent of Brits buying abroad still buy their second home or investment property in Spain. Which has been supported recently by a survay of the top property searches of which mainland Spain and the Islands came out on top for people looking for property abroad
Labels: canary islands property, property prices in canary island, property prices in spain, spanish property, tinsa
