The national average property price has dropped from 249,000 euros in December 2006 to 245,000 euros in January 2007, research produced by Spanish property portal Kyero.com has revealed.

The research also found that Gran Caneria in the Canary Islands has seen a seven per cent drop in property prices since last December. However, Lanzarote in the Canary Islands has seen nearly a 10 per cent rise in property prices from 285,000 euros in December 2006 to 312,000 in January 2007. The cheapest place to buy property in Spain remains Cuenca in the centre of the country where properties average 39,000 euros, 84 per cent below the national average. Barcelona is the most expensive place to buy Spanish property, with an average price of 608,000 euros, 148 per cent above the national average. The most popular province in which to buy property in Spain remains Malaga where property prices average 315,000 euros.

The Spanish stock market appears optimistic about the future of the Spanish property market with shares of property companies quoted on the Madrid Stock exchange rising by more than 60 per cent in 2006. However, not everyone shares this extremely positive outlook for the market in 2007. Mark Stucklin from Spanish Property Insights said: "I must confess that I don't share this enthusiasm, at least not in the short term. But I am optimistic about the best quality property and developments in Spain, which I think will benefit from a flight to quality as the market dips. "2007 is going to be a buyers' market. If you are hoping to buy, go for quality. If you are hoping to sell, lower you price expectations."

Properties in a 'new' Spanish costa, a 45 minutes drive from Malaga Airport, are soon to be released to overseas property buyers through Eden Villas. The Costa Tropical lies between Costa del Sol and Costa de Almeria and is part of the province of Granada. The development of La Cenicilla is just a ten-minute drive from the beach and is in walking distance of village facilities. The mixed development is made up of apartments, townhouses and detached properties, all of which will start with a price tag of around £100,000.

A new golf course on one of Murcia's largest haciendas might also be of interest for those about to take the plunge into the Spanish property market. Designed by Jack Nicklaus Design, the 18-hole golf course is situated in a resort which includes facilities such as restaurants, bars, gym, nursery, saunas and swimming pools. There is also a driving range, golf academy, pro shop and club house on the estate. Prices at Hacienda Riquelme start from £121,000 and are available through Overseas Dreams.

Note. Mark Stucklin runs Spanish Property Insight, a property information website.

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Article published on 9 January 2007