Spanish house prices stabilising

Arenal Bay, Menorca Photo: Overdaforest

The latest index from Tinsa shows that the average price of finished property (new and used) in the country fell 2.7 per cent in January 2015 compared to January 2014 - the first time an annual decline lower than 3 per cent has been recorded since June 2008.

The figures confirm the stabilisation trend that the valuation firm has observed since the second half of 2013. Indeed, while house prices fell 9.2 per cent across the year of 2013, last year, values dipped a far smaller 3 per cent.

The Balearic and Canary Islands continue to lead the market in terms of house prices. Since the market peak in 2007, prices have fallen by 31.3 per cent, compared to the overal national deecline of 41.6 per cent. The Mediterranean Coast suffered the biggest drop, of 48.6 per cent, followed by Capitals and Major Cities (45.7 per cent). Indeed, while the Mediterranean Coast has seen values fall 5.2 per cent in the year to January 2015, the Balearic and Canary Islands actually increased by 3.8 per cent: the only region to record a rise in house prices.

Tinsa forecasts an increasingly stable performance in the coming months, with prices eventually levelling out - as long as there are "no negative surprises" in terms of economic growth and unemployment.