Pick up a Spanish property bargain in Barcelona or Madrid

Spanish property valuation company, TINSA, conclude that house prices in Spanish cities suffered the most last month.

What I saw during a recent trip to Barcelona adds experiential weight to their conclusions.

It was absurdly cheap to buy and rent property in Spain’s second capital.

I saw Barcelona city apartments available to rent for around €1,000 / month, and plenty of Barcelona city centre apartments for sale at around €200,000.

Both are incredibly cheap for property in one of Europe’s most beautiful cities. Overall cost of living (for a tourist) seemed very low too.

I’d expect to see more foreign buyers snapping up property bargains in Spain’s cities for quite a while yet..

TINSA’s new Spanish house price report is available today.

The accompanying press release summarises their findings:

The fall in house prices increased at the start of the last quarter

Capitals and Major Cities continue to fall the fastest.The least affected markets are the Balearic and Canary Islands.

The year-on-year decline in the IMIE General index intensified during October to 12.5%, after the index reached 1525 points.

The cumulative decline in house prices since the top of the market in December 2007 was exactly 33.2%.

By area, “Capitals and Major Cities” once again recorded the steepest year-on-year decline of 15.6% during October.

The “Mediterranean Coast” followed with a decline of 13.9% and “Metropolitan Areas” with 13.6%

“Other Municipalities” remained below the average with a year-on-year decline of 9%, with the “Balearic and Canary Islands” recording the most modest decline of 7.8% compared to the same month in 2011.

In terms of the overall decline from the peak of the market, the “Mediterranean Coast” recorded a fall of 39.8% to October, followed by “Capitals and Major Cities” with 37.5%, “Metropolitan Areas” with 34.7%, “Other Municipalities” with 27.2% and lastly “Balearic and Canary Islands” with 26.7%.