Spanish property rates have not bottomed out, and the property in the country was over valued by 30 percent with only declined 10 percent.

The biggest house price falls to come are probably to be in the holiday hotspots where many overseas buyers have brought and will be headed by the banking institutions.

At present, banks are the biggest property owners of the country, which have repossessed property as loans went bad. Banks owned property is generally lower priced with large discounts but BNP Paribas Real Estate, the real estate arm of French bank BNP Paribas, argued that banks in the country will start having to provide discounts of 50 percent in next year to transfer some of their stock of property.

However, BNP Paribas Real Estate said that present discounts are not big enough to make sales.

The downfall in price could lead by the banks who are now the biggest owners of Spanish real estate. According to the statement issued by BBVA, Spain’s second largest bank, “Spanish Property prices were 30 percent over-valued, but have only fallen 10 percent so far.”

Pundits suggested that the biggest Spanish property price falls will come where they are the most unsold homes.