There was no respite for house prices in the Spanish capital last year, according to a new report by Tecnocasa, the franchise chain of estate agents in Spain. Resale house prices in Madrid province fell an average of 12.24 per cent last year, based on sales handled by the Tecnocasa network of about 100 offices in the province.

House prices in Madrid have fallen relentlessly since 2007, to the present level of €1,532 a square metre. Peak-to-present, resale house prices are down a massive 58 per cent.

Majadahonda (€1,743 a square metre) and Alcorcón (€1,598 a square metre) are the two most expensive districts in the Madrid province, according to Tecnocasa data (and there is no data for districts without a Tecnocasa office). At the other end of the scale are Parla (€892 a square metre and Móstoles (€1,056 a square metre).

Larger properties greater than 70 square metres are 3 per cent more expensive, on average. In the boom years smaller flats (<70 square metres) were more expensive; in 2006 small flats cost €3,975 a square metre compared to €3,118 a square metre for larger ones, thanks to the pressure of land prices and hysterically speculative demand for housing. Nowadays, buyers are after the biggest bang for their buck, and prefer bigger flats that are now more affordable. Data produced by Tecnocasa is based on actual sale prices, rather than asking prices, valuations or the sales witnessed by notaries (where under-declaration is still rife), the company notes. Unlike other house price indices, Tecnocasa's figures should reflect real market prices.