After adjusting for inflation, Spanish house prices are almost back to where they were 10 years ago, reveals my analysis of the latest official house price index data from the Department of Housing (Fomento).

Spanish property prices fell to 1.566 €/m2 at the end of September, 9.5pc lower than a year ago, according to the House Price Index published by the Department of Housing, part of the Ministry of Public Works (Fomento).

Over 10 years Spanish house prices have risen 37pc, but once you adjust for inflation to get the real value of prices (in terms of Q3 2002 Euros), real prices have risen just 4.5pc, as illustrated by the graph above.

Peak to present, nominal prices have fallen 25.5pc since Q1 2008, and by considerably more than that in real terms. All the data is summarised in the following table (click table to enlarge).

In real terms house prices in the Canaries have actually fallen 20pc over the last decade, whilst rising 36pc in Cordoba, and 25pc in Cadiz (Costa de la Luz).

So in general terms Spanish property hasn’t been a particularly good investment in real terms over the last decade, though it does depend on the region. But then again, neither has the stock market.

Other recent house price data

Tinsa (appraisals) for September
National YoY: -11.6pc
Coastal YoY: -10.8pc
Peak-to-present: -46.5pc

Fotocasa for September
Resale YoY: -9.7pc
Quarterly: -2.7pc

Pisos.com for October
National YoY: -10.2pc, the first double-digit decline since Pisos.com started publishing an index.

Idealista.com for October
National resale YoY: -9.9pc.