Data released by online property portal Fotocasa on Thursday also showed rent in the Catalan capital of Barcelona fell 4.6%, while prices in other tourist hotspots Seville and Palma de Mallorca dropped 4.1% and 3.5% respectively.
Fill vacant rental units with tenants or we will take over your properties, the city is warning landlords.
US house prices have been resilient amidst the COVID-19 pandemic, Zillow research shows.
The median price of sold homes in May was $263,408, up 4.6% year-on-year.
Home prices came surging back in June, despite the coronavirus shutdown in March and an earlier slowdown in the market.
With a tiny market and a new residency-by-investment program, the British island is trying to make itself an alternative to pricier neighbors.
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