Falling house prices in Spain could prove to be interesting for those Brits looking to invest in Spanish property.

According to a new report released by Valencian real estate firm Jimenez de Laiglesia, prices of Spanish property could have been overvalued by as much as 37 per cent at the peak of the housing boom in 2007, reported Kyero.com.

Spanish property prices have fallen by around 15 per cent since this point, the company said, which could see Brits searching for a home in the country able to get their hands on a bargain, the source reported.

As well as this, the report flagged up the potential positives which could come as a result of the economic downturn.

Housing affordability in the country has risen, with the level of household income people need to spend on buying a home falling from 51 per cent in 2008 to 31 per cent this year.

Property prices in the country have been falling steadily in recent months, but figures from the National Institute of Statistics recently showed that the decline may be slowing.

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