Spanish house prices have been falling for almost six years

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Prices of private housing in Spain dropped 7.8 per cent in the final three months of last years, according to the National Statistics Insitute, the 23rd quarter of year-on-year decline in a row, the equivalent of almost six years.
 
Indeed, values have dropped steadily now in the country since 2007, when annual growth of 5.7 per cent was recorded in one of the four quarters. In the fourth quarter of 2013, prices fell another 7.8 per cent, an improvement upon the decline of 12.8 per cent recorded in the same period of 2012 and the 11.2 per cent decline recorded in 2011, but more severe than the decreases suffered in 2010, 2009 and 2008.

Existing homes experienced the biggest loss in value, notes Kyero, with prices falling 7.7 per cent year-on-year in the fourth quarter of 2013. On a quarterly level, the three months saw private housing values decline 1.3 per cent, a downturn for the market after registering a quarterly increase of 0.7 per cent between July and September.

Previous statistics have seen prices begin to rise in the more popular markets, as overseas buyers flock to take advantage of low-priced holiday homes. Indeed, year-on-year (the fourth quarter of 2013 compared to the same period in 2012), the Balearics and Madrid both enjoyed a price rise of 2.1 and 1.7 per cent respectively.

Quarter-on-quarter, the price of private housing climbed in two regions despite a fall in 15 regions: the Balearic Islands (0.6 per cent) and Cantabria (1.5 per cent).

With demand increasing from overseas, the start of a turnaround in some areas suggests that the market may bottom out this year, with foreign investors fuelling the gradual recovery.