Those thinking of investing in Spanish property may wish to consider Catalonia, as new figures have indicated price falls.

A study by property portal idealista.com has revealed that new homes in this region have seen significant drops in value in the last 12 months.

And areas that are particularly popular with those buying Spanish property as a second home have seen asking prices decline, with properties in Malgrat down 15 per cent over the last year, while the Costa Brava has experienced a decrease of more than 13 per cent.

The portal also found that costs in Barcelona have fallen to 2005 levels, due to a drop of 8.6 per cent over the last year.

Last week Property Wire reported that Spain’s Institute of Construction Technology expects prices to remain low until 2011.

Spokesman Josep Fontana explained that a high level of construction will keep values down over the next two years, before demand sees them rise again.

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