Tourist areas such as the Costa Blanca could see price falls of up to 30%

Tourist areas such as the Costa Blanca could see price falls of up to 30%
Reports on Spain's ailing housing market show sales volumes are down almost 50% since the summer and prices may suffer further falls of up to 30% — with holiday homes in tourist areas likely to fare worst of all.

The Spanish market has collapsed since 2007, with prices of new coastal homes and older houses in inland 'white villages' popular with British buyers plummeting 50% or more.

Now Spain's housing ministry – which counts domestic properties as well as foreign holiday homes – reports a record-breaking 48% drop in sales between July and September 2010. This coincides with austerity measures being introduced in Spain, including the scrapping of mortgage tax relief.

In response to that, asking prices of homes on sale have plummeted as desperate sellers try to attract buyers. The property sales portal idealista.com reports that prices in 14 regions of the country fell in November, while rival website facilismo.com shows price falls across Spain for 39 months out of the last 40."

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