The volume of homes in Barcelona and Madrid for sale at under €200,000 (£164,000) has increased significantly in the past year because vendors are reducing their prices, according to research released by Spanish property firms Idealista.
The volume of homes listed with Idealista with an asking price of under €200,000 at the end of July rose 55 per cent in Madrid and 48 per cent in Barcelona, compared to the corresponding period last year.
Since the peak of the Spanish property market in 2006, the number of homes priced in the €100,000 to €200,000 bracket has gone from 8 per cent of the total housing stock in Madrid, to 27 per cent today, up 458 per cent.
In Barcelona, they have gone from 3 per cent of the total in October 2006 to 18 per cent today, an increase of 638 per cent.
The fall in property prices in these two major cities is great news for anyone thinking of buying a home in Madrid or Barcelona. The decline in residential values also shows that it is not just the coastal Spanish property markets that have been affected by the downturn in the housing sector.
Spanish property prices have primarily fallen because of an oversupply of homes in Spain.
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