Figures from Spanish Property Insight show that Granada experienced the greatest nominal real estate prices in 2007, up 8.5 per cent on the previous year to 1,517euros per square metre.

Although Granada has benefited from the expansion of nearby Malaga airport to nearly double its original capacity, the province's Costa Tropical continues to lose out to the Costa del Sol in terms of interest from overseas property buyers. This is likely due to the extension of the motorway network, effectively joining the Costa Tropical to the Costa del Sol, improving accessibility.

Spanish property in Granada varies from city flats and townhouses, which are popular with buy-to-let investors looking to cash in on the area's thriving student market, to renovation properties and farm houses in the surrounding countryside. The latter type of Spanish property is becoming increasingly popular with overseas buyers; country houses being one of the most searched-for property types on Spanish property portals. Buyers showed particular interest in villas with swimming pools, looking to spend no more than 150,000 euros.

Spanish property of this type in this price range is more likely to be found in inland areas, which may explain the inclusion of the land-locked province of Aragon in last year's top five hottest Spanish region list. The Spanish region was the fourth most popular with overseas property buyers, behind the coastal areas of Andalucía, Valencia and Cataluña; Murcia completed the top five.

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Article first published 8 February 2008