The ministry of housing in Spain which includes the Andalucia property  market, has stated that houses prices rose by 4.8% in the last quarter of 2007
As a comparison house price inflation was 9.1% in 2006 and 12.8% in 2005
and 17% in 2004
Further bad news is that the NUMBER of houses being sold has also greatly reduced.
Take a look at these figues from the latest leading indicators:

Houses sold in 2007 were 128,200 which is 16% down on 2006
And worse, the SUPPLY of new houses increased by 9.4%
Because of the over supply and lack of sales, over 40% of real estate agencies in the Spain closed down.

The only positive we can see here is that prices must fall and that there are bargains to be had, if you are patient and are prepared to wait. You will do even better if you are prepared to make low offers and walk away if they are not accepted.

There are a number of quality UK property developers for new builds in the south coast of Spain.

Their names will be very familair to you as a british citizen and will give you the confidence of working with a British company.

Here’s TaylorWoodrow and how they list their services:

QUALITY

• Taking great care in providing, as as they put it, meticulous care in house construction.
• A large range of features and finishes
• A team of reps to take you to all potential homes
• Finance plans and mortgages for your home

Pearloverseas on the other hand list their services as an easy to use online property developer service available in English and developed to help British clients looking to buy property in Spain.

Pearloverseas also work hand in hand with Barclays bank for mortgages that may be required by clients.
So you can have a completey UK based serivce for buying, developing and providing your mortgage.
This may suit if the thought of working with foreign bank and property developers does not fill you with confidence.