The downturn in Spain’s residential housing market is gathering pace, as tightening credit conditions exacerbate already weakening demand among first-time buyers and holiday home investors.

Figures released on Wednesday by the National Statistic Institute show that the number of house sales completed in March dropped more than 38 per cent year-on-year, to 46,100 units. This compares with an annual decrease of 27 per cent in January and 24.5 per cent in February.