Asking prices for resale properties fell just 0.9% over 3 months to the end of March, according to data collected by Idealista.com, a leading Spanish property portal. The table above gives price changes for selected regions.

As a result, the average asking price of property in Spain finished March at 2,387€/m2, with wide variations between regions. The Basque Country has the most expensive property (3,482€/m2), followed by Madrid (€3,282/m2) and Catalonia (2,828€/m2). Regions at the other extreme, with the cheapest property, are Extremadura (1,437€/m2), Murcia (1,506€/m2) and Castilla-La Mancha (1,627€/m2).

Changes in asking prices are an important market indicator, as vendors tend to raise or drop their asking prices in response to demand. Nevertheless, they are not an accurate guide to transaction prices, as many vendors are still asking unrealistic prices.

Correction not over

Asking prices have fallen by more in the past, but Idealista warn that “nobody with the slightest knowledge of the real estate market would dare to speak of stabilisation or suggest that prices might rise, much less a bounce back in prices or a return to the ‘boom’ that drove prices above any reasonable analysis.

“The factors the caused the real estate bubble to burst and that pointed towards price falls are still in place: over-supply, tightening credit conditions, and rising unemployment.”

Prices rose on a quarterly basis in three regions: The Balearics (+0.5%), Asturias (+0.1%), and Cantabria (+0.1%). Prices fell in all other regions, the most in Navarre (-2.7%) and Castilla-La Mancha (-2.4%).