Despite starting the year well with property prices rising in all Spanish regions, 2007 has ended in December with prices 0.28% below where they started in January. According to Facilisimo.com, the region of La Rioja has been the worst affected, dropping 11.08% to 2159€/m2 , Madrid and Barcelona haven't avoided the falls dropping 2.38% to 3479€/m2 and 3.05% to 3777€/m2 respectively.
The region of Andalucia has fared slightly better closing the year 2.95% above where it started in January: 2,070€/m2 - 01.01.07 to 2,130€ /m2 - 01.01.08. However prices have dropped 2.34% since 01.08.07. Marbella, the focal point for the Costa del Sol hasn't fared too badly either with prices overall higher than the beginning of the year (2.45%) but dropping off 2% since it's highpoint of 3,197€/m2 at the end of July down to 3,133€/m2.
The results of a survey by Facilismo say that 68.41% of Spanish citizens believe the current goverment to be at fault. 62.09% believe that prices won't drop anymore and 66.28% say they would still buy instead of renting. However certain analysts think that the current redressing of prices is a necessary market correction. If prices continue to drop up to a further 10% in 2008, they will be back at the level of 2005.