Annual property price inflation in Spain fell from 12% in the first quarter of 2006 to 10.8% during the second quarter of this year, according to the Spanish Ministry of Housing.

Annual Spanish property inflation rates have fallen every quarter since the end of December 2004, when the rate of property inflation was 17.2%.

Antonia Trujillo, Spain’s Minister for Housing, said: “The government is on the right path, as it is now clear that a soft landing for the property market is under way.”

Nick Freeston, International Manager at Chesterton International, comments: “It is interesting to note that according to the government’s figures in 2005, some of the highest growth regions in Spain were Aragon, Andalucia and Galicia. and in 2006 Mallorca is proving to be our hottest market with growth levels anticipated to be in double figures."