The price of property on the Spanish Mediterranean coast, not including social housing, fell by 8.9% over 12 months to the end of October, according to the latest price report from Tinsa, one of Spain’s leading appraisal companies.

As was to be expected, the cost of property on the coast fell more than the national average, which was down by 6.5% in a year. Coastal areas tend to be dominated by the second home market, which traditionally more in an economic downturn. Property on the coast is also suffering from a strong Euro making Spanish property more expensive for British buyers.

Price declines of close to 9% will come as a shock to the holiday home market in Spain, which has enjoyed years of surging. According to Tinsa’s house price index, coastal property prices rose by more than 20% in 2002, 2003, and 2004, and by double digits in 2005 and 2006, before falling to 2.8% in 2007.

Prices in the Balearics and the Canaries held up better than on the mainland, falling by only 5.4%. Prices in Spain’s main cities fell by 6.7%, and by 7.6% in other urban areas.

Read the full report from Tinsa