Costa del sol property sales surge by 52pc

Photo credit: Drumsara

Spain's economy may still be slumping, but sparks of recovery may be appearing on the Costa del Sol, where property sales have surged, according to agents.

Transactions involving homes on the popular Coast increased by 52 per cent in September compared to 2011, Taylor Wimpey España announced last week. Indeed, as property prices across the country stay low, overseas investors have swooped on bargain holiday homes, with overall sales in Spain jumping by 22 per cent.

"Whatever has been said about Spain, I don't think anyone can argue that it's lost its appeal as one of the world's hottest tourist destinations," commented Sales Director Mark Pritchard.

Indeed, 2012 is now predicted to be the best year ever in tourism revenues and second best in visitor numbers according to recent data.

Spain managed to close the best summer of its history this year with nearly 21.6 million visitors between June and August while official estimates show that 2012 will be the second best year of all time for Spanish tourism with 58.1 million tourists, not far behind the record breaking 58.6 million visitors seen back in 2007 during the property boom.

And those visitors weren't afraid to dip into their pockets. The average expenditure by foreign tourists visiting the country increased by 7% between January and August, reaching €107 per day, according to the Bank of Spain. As a result, the resilient Iberian nation saw tourism revenues between January and July reach €23.877 million - an increase of 0.6% compared to 2011, which was already a record year for Spain.

"It's really no surprise that foreign spending has increased in Spain this year," comments Pritchard, "particularly among British tourists who have been bagging more for their buck considering the strength on the pound over the euro."

Indeed, exchange rates have encouraged property investors to return to the debt-ridden country, despite its gloomy economic outlook. Spain has remained the site's number one real estate destination since last year, but interest continues to grow. Last month, demand for Spanish property reached an all-time high on TheMoveChannel.com, accounting for over one in five enquiries on the portal.