Property values in Spain 'will keep falling'

Industry analysts have predicted that property prices in Spain will fall by about 15 per cent this year.

The Spanish Property Owners Guild believes the crash which affected the market last year is not over yet and that values will continue to drop further.

However, spokesperson Paul Bradley has indicated that this is not putting foreign property buyers off investing in the country.

He stated that these are mainly people who already have the necessary finance on hand and are not required to borrow.

Many of these were said to hail from other parts of Europe, including the Netherlands and Scandinavia.

Mr Bradley commented: "There are some cash buyers but mainly from euro currency countries such as Holland."

He added that properties in Spain are now 16 per cheaper than they were at this time last year.

This comes after Shelter Offshore suggested that buyers who "get in ahead of the pack" with a bottom-of-the-market offer could bag themselves a bargain, while taking their pick from a wide range of property stock.