Official figures relating to property price increases may be significantly exaggerated according to the Association of Developers and Constructors of Spain (APCE).

Guillermo Chicote - head of APCE, believes that Spanish property prices have been rising by around 10% pa between 2002 and 2004. However, official government figures show prices rising by 18.1% in 2002, 17.6% in 2003 and 17.4% in 2004.

In January this year, Ignacio Navas, spokesman for the Spanish Notaries organisation raised the issue when he said: "There are no reliable statistics for the property market in Spain. The figures provide by the appraisal companies cant be trusted because these companies overstate property prices to justify larger mortgages not only for buying houses but also to finance general consumption."