Residential property prices in Cyprus continued to fall during the first quarter of 2012, albeit at a slower rate, according to the latest data from the Central Bank.

The figures reveal that the average price of a home in Cyprus depreciated by 1% quarter-on-quarter compared to -1.8% in the previous quarter, led by falls in Paphos and Famagusta, were prices fell by 3.1% and 2.4%, respectively. Year-on-year average property prices dropped by 4.3%.

But despite the slowdown in property price falls, the Central Bank dashed any hopes of a market recovery, indicating that prices are actually likely to fall further, due to the fragile state of the economy, a lack of mortgage liquidity and low demand from homebuyers.

Residential property prices could appreciate by up to 200%, following the introduction of fresh legislation which allows more foreigners to purchase property in Turkey, according to a leading property expert.

TAB Real Estate Investment Chairman Ahmet Temeltaş believes that prices in the city, where there is already a major housing shortage, will boom as a consequence of an anticipated rise in demand from overseas buyers.

The new law amends title deed laws and changes the previous reciprocity requirement, which dictated that people living in the 89 countries that did not have the right to own property in Turkey because Turkish nationals are not permitted to purchase homes in those countries. But now the citizens of 183 nations can own property in Turkey.

“The price of a square meter of real estate is likely to increase to as much as $6,000-$7,000 from the current $2,000 levels in a short period of time,” Temeltaş said in a statement.

He named Ataşehir, Maslak, Çekmeköy, Sancaktepe, Kartal, Pendik and Halkalı as some of the best Istanbul neighborhoods in which to invest.

According to the Central Bank of Turkey, the average price of a home in Turkey increased by an average of 9% in July compared to the same month last year, thanks partly to a rise in property sales, with 96,000 homes sold in the first quarter of 2012, up 5.5% year-on-year

Despite the recession and wider Eurozone crisis, the Spanish property market is growing increasingly popular with Brits looking to buy a property abroad.

Conti, the overseas mortgage specialist, report that they have seen a 33% rise in Spanish mortgage enquiries over May and June, as more Britons seek to take advantage of significant property price reductions across the country.

Spanish property prices have plummeted in recent years, with the latest monthly house price index from appraisal firm Tinsa showing that the average price of home in Spain fell by 10.8% year-on-year in June.

“Bargain prices and the opportunity to negotiate these down even further with some very motivated sellers mean that it’s most certainly a buyer’s market,” said Clare Nessling, director at Conti.

The Costa Blanca, in particular, is proving extremely popular with British buyers, according to estate agents HomeEspaña. The company report that Brits accounted for 44.9% of sales made this year to date, spending an average €123,147 (£96,911) on a property.

Richard Way of the Overseas Guides Company commented: “Spain might be on the brink of requesting a bailout but it would seem the country is firmly back in favour with British buyers, especially in the Costa Blanca.”

He added: “The increase in the strength of the pound this year and availability of heavily discounted properties will have encouraged many British buyers who had been waiting for the optimum time to buy to take action.”