The Spanish property market shrank by -29% in 2008 according to Spain’s Property Register.

There were a total of 561,500 home sales last year, compared to 788,500 the year before.

Sales of new properties fell -13% to 296,400, and re-sales fell -41% to 265,000.

On a quarterly basis, there were 113,300 home sales in the last three months of the year, down -8% on the previous quarter, with new-build sales down -3% to 64,500 and re-sales down -13% to 48,800.

Extremadura was the only autonomous region where home sales increased by +0.6%, thanks to an increase of +91% in new sales, and despite a decrease of -20% in re-sales.

Year-on-year, sales fell the most in Catalonia (-44%, new build – 37%, re-sale -49%), The Balearics (-39.5%, new -27%, re-sale -50.5%), and The Valencian Community (-32.5%, new -14, re-sale -44%).

The report points out that province on the coast are suffering the biggest declines in sales, thanks to the collapse of the second home market. Sales fell in Tarragona / Costa Dorada (-50.5%), Gerona / Costa Brava (-43%), Barcelona / Maresme (-43.5%), The Balearics (-39.5%), Alicante (-37%), and Tenerife (-36.5%).

The report also points out that new-build sales were higher than re-sale for the third consecutive period, whereas re-sales are normally higher. This is because many people who bought under construction or off-plan in previous periods now have to complete or lose their deposits. Were it not for this, the number of new properties bought would be much lower.