Spanish property prices continue to fall… but the Balearics remain stronger.

The National Institute of Statistics (INE) has said in its House Price Index for the first quarter of 2013, released today, that house prices in the Balearic Islands have experienced a fall of 9.9%  from the same period last year, although the islands were the Spanish region that experienced the smallest decline.

For the whole of Spain, the fall was of 14.3%, being the third biggest drop registred since 2007, after those sustained in the second (14.4%) and third quarters (15.2%) of 2012.

House prices fell in all regions, but especially in La Rioja (18%) and Madrid (16.8%).

These declines coincide with the end of tax credits for new home purchases and the increased VAT on the purchase of brand new houses, which has gone from 4 to 10%.