A combination of lowering prices, attractive mortgage rates and residency permit schemes have outweighed investors' economic concerns, causing interest to increase in Britain.
Last year, more properties worth over one million euros were sold here in the Balearics than anywhere else in Spain and that trend repeated itself during the first quarter of this year during which time Spain cemented its reputation as the most popular destination in the United Kingdom, seizing the top spot back from long-standing rival and favourite, the USA.
America had been the most sought-after destination for eight months in a row after it trumped Spain in October 2012, a trend that looked set to continue as the US market recovery continues to build momentum. According to the latest official data, since the recession hit at the end of 2007, the real estate sectors in the Balearics and Malaga have been the most resilient and last year in the Balearics, 729 properties worth an average of 1.1 million euros were sold.
And, according to industry sources, the luxury property market was worth over 1'000 million euros to the region last year and it appears that the driving force behind the market are British investors followed by the Russians, the Swiss and the Scandinavians which have all leapt ahead of the German market which has apparently slowed.
Even the Chinese are moving into the Spanish property market as the government makes a concerted effort to sell Spain as a prime destination for property investment with a global campaign that began in London last year.
The most popular locations are coastal and house prices are at the top end as the market is apparently going to rise during this quarter, if interests continue to grow and while the average sale is around 1.1 million euros, properties on the market for four million plus are being sold.
Look to be moving
The signs appear to show that, while Spain's property market is still a long way from the boom of ten or so years ago, things do at least look to be moving once again. Undoubtedly a lot of this is down to foreign property investors looking to grab a bargain while the going is good, because Spain generally has not lost its appeal as a desired destination.
Investing in Spanish property for most is a lifestyle choice, with buyers being lured by the climate and culture, which has not changed throughout the economic hardship.
And buyers are aware that that while luxury property prices are not as high as they were during the boom days, their investment may turn out to be a very shrewd move in the long term, as there is always going to be a high tourist demand, leaving investors with options to rent out their property long-term or lease it as a holiday let.