Spanish property prices 'likely to fall further'

Expatriates looking to purchase property in Spain may find that asking prices will drop lower soon, according to an industry expert.

Mark Stucklin, head of Spanish Property Insight, said that asking prices are likely to fall further this year, but some properties are already priced very competitively.

"You are starting to get, not giveaway prices, but really quite interesting prices for property in Spain" he said.

His comments follow research from Standard & Poor's which suggested that house prices in Spain are still overvalued by around 12 per cent, while properties in France and the UK remain overvalued by 18.5 per cent and 21 per cent respectively.

Mr Stucklin commented that although fluctuations in currency have deterred some expatriates from investing in Spanish property, the discounts on offer could outweigh any losses incurred from exchange rates.

"I frequently see 50 per cent discounts from peak in plenty of places - that is 30 per cent more than the pound has dropped" he added.