Spanish house prices dropped at their fastest pace on record in the first quarter, after new house prices dropped for the first time, and analysts saw double-digit declines ahead as unemployment rates soar.

The price of new build has dropped by 9,8 per cent over the past 12 months according to the latest figures by Sociedad de Tasación (Spanish property valuation association), published Wednesday.

The price of new builds dropped to 2,589 euros per square meter in the first quarter of 2009 (which is the equivalent of 258,900€ for a 100 square meter property).