With the arrival of emerging real estate markets in Europe, such as Bulgaria and Croatia, and further afield with Dubai and South American countries becoming must-buy areas, Spain - and its maturing real estate market - is fast losing its title as a real estate investment hotspot.

Spanish real estate construction dropped by 11 per cent in 2006 to a level of 4.9 billion euros worth according to the Bank of Spain. Mortgage applications also fell off as the European Central Bank raised interest rates to 3.75 per cent.

"It is true that the industry has to listen to comments regarding the Spanish sector such as the banks have over-invested in the construction industry or that the real estate market is suffering from over-expansion and possibly historic over-valuing by agents and developers," says Martin Cox of the Global Currency Exchange Network (GCEN).

However, while some real estate agencies that don't include Spain in their portfolios are claiming - surprise, surprise - that the Spanish real estate market has had its day, an alternative view is not difficult to find. Yes, prices are stalling, but the Spainish real estate market is vast and won't simply disappear overnight. Indeed, falling prices are not going to dissuade those seeking a home rather than an investment from buying in Spain.

For example, according to GCEN, it is still transferring more Spanish real estate bound euros, year on year, despite whispers of a market slowdown being at least a year old. "This indicates to me that although traditional coastal area purchases may be slowing down, the savvy UK buyer is diverting his attention to more inland Spanish areas where cheaper real estate prices potentially mean more value for money," says Cox.

Overseas Spanish real estate buyers are also continuing to look due to the country's relative stability, holiday home potential and lifestyle benefits rather than traditional investment opportunities. Cox also points out that interest rates are on the up globally, so this is not a factor exclusive to Spain which should put people off entering the Spanish real estate market.

"Spain is still the country most people want to go to, but the investment is more in quality of life, healthcare, accessibility, climate, and cost of living," says Jack Hamilton, Managing Director of Parador Properties.

He continues: "These days, if you want a good real estate investment, with a fast return, you've got to look to the emerging markets, like Turkey. You won't lose money by investing in the Spanish real estate market if you buy wisely, in the right location, and at the right price. It's plain common sense, and that goes for every country, the UK too. The Spanish market remains one of our largest and the recent emotive headlines may well deter people from moving there, which is a pity, as it really is a secure home away from home."

Those with an undeterred interest in owning Spanish real estate might be interested to note that two-bedroom apartments in the town of Calasparra, on the Costa Calida, are currently available through Parador Properties for 108,000 euros (approximately £74, 483). The apartments are fully furnished and have access to a communal pool. Alternatively, DLR Properties are marketing one-bedroom apartments on the Costa Blanca starting from 75,000 euros (approximately £50,000).

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Article published on 30 April 2007