In 2012, property prices in Spain fell by 12.9% to inflation. In this case, the official index of prices from the Housing Department of Spain fell by 10%, reported the portal Spanish Property Insight.
Public agency in Spain for the first time acknowledged that the real estate prices dropped so dramatically, and the level of price decline in the percentage reached double figures. In fact, the cost of housing in Spain is now equal to the figures for 2003.
The largest drop in property prices recorded in Valencia (€1,101 per square meter, -15%), Murcia (€1,059, -14%), Alicante (Costa Blanca) (€1,203, -13%), Madrid (€1,981, -12.4%) and Girona (Costa Brava) (€1,625, -12.2%).
In addition, over the past year housing became cheaper in Andalusia (€1,289, -10.6%), the Canary Islands (€1,270, -11.6%), Catalonia (€1,811, -11.2%), Barcelona (€2,034, -10.7%), Malaga (Costa del Sol) (€1,549, -8.9%) and the Balearic Islands (€1,801, -7.7%).