What's happening to spanish prices?

According to Spain's housing ministry, average house prices in the country fell 6.2% in 2009, compared with 2.8% in the previous 12 months...

However, in the final three months of last year the declined slowed to 0.5% compared with a drop of 0.9% during the earlier quarter.

Paul Bradley of the Spanish Property Owners' Guild is predicting that prices will plummet a further 7% before bottoming out, but remains confident that investors are still interested in the Spanish property market.

Research from Primelocation certainly supports this view; the property portal recently published its International Search Index showing that in November, the number of searches for international property doubled, when compared to a year earlier.

Almost one third of searches were carried out for property in Spain, which had overtaken France to become the most popular destination, after twelve months in second place.

Primelocation is therefore hopeful that pent up demand for second homes and investment purchases is likely to spill over into increased sales activity this year.

Source: www.homemove.co.uk