Spanish house prices have fallen back to where they where seven years ago, according to the Government’s House Price Index (Fomento).
House prices fell 7.2pc in Q1 compared to the same time last year.
The average cost of housing in Euros/m2 now stands at 1,649€/m2, basically where it was at the start of 2005, when the Government first started publishing this particular index.
This index isn’t very reliable but it does help to illustrate the house prices are clearly going down (see chart above).
Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on email@example.com.