The currency specialists state that 26 per cent of all enquiries it receives relating to Brits buying abroad are for Spain.

"Over supply in Spain at present can lead to real bargains and property markets always fluctuate, so the increase in buyers is coming from astute investors seeing the potential of purchasing whilst the market is slightly lower," says Mark Bodega from HiFX.

Indeed, according to the Kyero.com Spanish House Price Index, average property prices fell 1.2 per cent from 250,000 euros to 247,000 euros over the June to August period. 

Statistics from Kyero.com show that Alicante, located on the country's east coast, is now the province most representative of the average Spanish property price of 247,000 euros whilst Malaga province remains the most expensive destination popular amongst Britons with average property prices of 310,000 euros, 26 per cent above the national average.

Catalan-speaking Barcelona, Mallorca and Girona top the Index as the most expensive in Spain, with average prices of 621,000 euros, 429,000 euros and 425,000 euros respectively.

Spanish bargains are still to be had inland, with the provinces of Cordoba, Albacete and Jaen offering the lowest property prices, averaging 148,000 euros, 142,000 euros and 91,000 euros respectively.

David Scott of David Scott International, a member of FOPDAC* , says: "The news that Spanish property prices have dropped has shown that now is the time to buy. In fact, I have a client who has been coming out every year for 12 years and now wants to buy a two-bedroom village house, with land, 20 minutes from the coast. The buyer has a top spending figure of £180,000 and for that there is a wide portfolio from which to choose.

"We also operate a 'four owner' scheme giving buyers an opportunity to own a quarter share in a fully furnished property with pool, from as little as £21,000."

Speaking on the slow down reported in some areas of Spain earlier this year, caused in part by rocketing property prices, Craig Stocks from Eden Villas (also a FOPDAC member) says: "Investors should remember that Spain is a big country and there are many distinct markets with varying prospects.

"One still relatively undeveloped area is the Costa Tropical (the coast of the Granada province), where excellent capital growth and rental returns can be obtained, with new, two-bedroom, beach-front property still available from around £110,000 - remarkable for a Spanish Mediterranean coast."

For those interested in purchasing Spanish property, a five-bedroom, four-bathroom villa with a swimming pool and air conditioning is currently on the market at 1,350,000 euros through Unique Living International Real Estate.

*FOPDAC, the Federation of Overseas Property Developers, Agents and Consultants, recently merged with the National Association of Estate Agents

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Article first published 19 September 2007