The Spanish cities of Valencia (27 per cent), Cadiz in Andalusia (26 per cent) and Tarragona in Catalunya (24 per cent) experienced the highest increases in prices to leave the average price of Spanish resale property at 1,773 euros per square metre. However, The Economist magazine believes that the Spanish property bubble is almost certain to burst soon. In a report conducted by the magazine into the overvaluation of house prices, the Spanish property market was found to have the third most overvalued, behind only Australia and the UK, with prices stated to be 25 per cent over their correct level. Previous data released by the Organisation for Economic Co-operation and Development had placed Spanish property prices in the moderately overvalued section – between 10 to 15 per cent too expensive.

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For further information about Spanish property:
Spanish Property Insight

Related articles about Spanish property:
Spanish property market review
Spain property prices: Not so bad
The best resorts in Spain

Article first published in March 2006