The prices of rental properties in Spain are still falling according to a survey carried out by real estate consultants Knight Frank in their Global House Price Index.
Of the 32 countries surveyed, Spain came in at position number 23, with countries such as Israel, Switzerland and Indonesia in at the top positions (these countries are among the few in the study to record price increases this year). Although the price of property in Spain is still falling, its' position could be worse with other countries such as Slovakia, Bulgaria, the US and the UK showing even bigger price declines.
The fall of property prices in Spain indicates that we are not yet out of trouble with the current recession. On the plus side, falling prices are attracting lots of bargain hunters to Spain with the intention of getting a good bargain on a Spanish property.
This in turn is good news again for the Spanish rental market, as lots of properties recently on the market can only add to the bargains being had right now by tenants all over Spain.An article by Spanish Property Insight analyses the meaning of the report and suggests that the government figures used for Spain in the report are almost definitely misleading as the price at which Spanish property is selling is "almost certainly down more than 8.3%".
Spanish Property Insight also go on to point out that the global figures from the report suggest good news as many property markets from around the world are beginning to show signs of bottoming out and many countries are already beginning to show an increase in property prices.