Annual property prices down 5.6pc in Spain, latest figures show

It is a picturesque village first recorded in the DomesdResidential property prices in Spain fell 5.6 per cent over the 12 months to the end of quarter three, according to the Official House Price Index from the Department of Housing.

Prices fell the most in the Costa Dorada where they were down 9.1 per cent followed by Madrid down 8.5 per cent and Murcia down 8.3 per cent.

Prices rose in just two regions. In Tenerife on the Canary Islands they increased 1.7 per cent and in Extremadura they rose 1 per cent.

But international buyers are buying holiday homes with the Russians replacing British people as ardent buyers. According to Jesualdo Ros, head of the regional developers’ trade body, said that Brits have fallen behind Scandinavian, Dutch and Belgian buyers.