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%.