Canary Islands property values dropped in January, new figures have revealed.

Data compiled by Spanish surveyors Tinsa has shown that Canary Islands property prices fell by 8.2 per cent last month, the Telegraph reports.

The Index of Spanish Real Estate Markets noted that the average price drop across the country for the first month of 2009 was over ten per cent.

In fact, the property firm has predicted that values could slip by another 20 per cent during the rest of the year.

Managing director at Tinsa Luis Leirado warned that house prices could fall by between 1.2 and 1.4 per cent each month.

"(Housing) stock is going to continue to stack up because the number of homes being finished is larger than the number of homes which are successfully sold," he stated.

Recently, tax partner with chartered accountant Campbell Dallas Bruce Wilson advised those considering investing in Canary Islands property to seek good advice and research the area.

Visit Rightmove Overseas for the best selection of Canary Islands property. Stop dreaming, start searching!