fatimaThe growing demand from foreign buyers enticed by bargain prices has contributed significantly to the increasing sales of properties in Spain. Indeed, there has been an evident increase in property sales since 2011 to 2013. In fact, sales momentum is now starting to build up in various regions of Spain.

In January, Mercers, a Murcia-based estate agency, predicted that property sales will increase by 25% in 2013. The figures from its most recent report showed the 25% increase in its transaction activity within the first quarter of 2013. Other well-established property agencies also support such figures.

However, the exact reason for the main trigger for this boost in the sales of Spanish properties has not been determined yet. According to the Mercers' director, Chris Mercer, he could not pinpoint exactly why their sales have gone up so much, but he said that most of their transactions were from resale properties. Therefore, it can't be attributed to the rush of buying new builds before the VAT increases.

The significant growth in the property sales of Mercers has influenced the entire Murcia market. According to the National Institute of Statistics (INE), in February 2013, approximately 1,169 transactions were completed and thus increasing by 24.1%. This is in comparison to the figures from the previous year on the same month along with the relatively lower national figure which is 17.3%.

Chris also added that business is up to about 65% since the first three months of 2011. Although inquiries made by local buyers regarding properties to be bought have not increased much, they have found more serious investors who are seeking to take advantage of various Spanish property bargains.

Indeed, more and more buyers are serious about closing decent sales; particularly those who have sufficient funds in place. Chris explained that a lot of people are wise enough to take this opportunity, thinking that bargain properties will not be offered for a long time as the market may soon recover.

Many real estate agents believe that part of the reasons why the Spanish property market is still going is that more and more foreigners are doing business in the country, particularly in the aspect of property buying. Prices are very low and reductions can reach 55%. Bargain prices are responsible for turning the heads of many property investors and home buyers from different parts of the world.

According to Mercers, there is now a growing interest from Dutch and German buyers. But over the years, the British along with the French, Swedish, Belgian and Norwegian buyers have dominated the market. Other non-EU members are also getting interested in investing in the Spanish property market.

Despite the 10% fall in the official Spanish House Price Index in 2012, Spain is still a way safer bet compared to other destinations such as those in North Africa. Political unrest and other disturbing issues are making a lot of international buyers back off from North Africa. In addition, Spain's lower property prices is just too enticing. This is why foreign demand continues to grow despite the crisis.cullar

The Banco de EspaŮa showed figures indicating that the highest volume of property investments made by foreigners was during 2012. Unfortunately, the demand from local buyers remains weak; especially since Spain is still struggling with its high unemployment rate. Also, most financial institutions are continually reluctant in lending money or allowing mortgages to potential Spanish home buyers.

Nevertheless, the figures showed that, in 2012, international property investors spent around €5.54 billion on Spanish properties. In 2011, it was just €4.7 billion. In the last quarter of 2012, foreigners bought various properties worth almost €1.8 million; it's a 56% increase from the same quarter in 2011.

Luis de Guindos, Spain's Economy Minister, said that, in as early as the end of 2013, growth could return to the country. Even SAREB, the so-called bad bank, hopes to sell around half its property portfolio which can amount to approximately 42,500 properties. This is to help kick start the recovery of the Spanish real estate market as soon as possible. Things are apparently improving as days go by.

Therefore, there is no reason for anyone to give up. Spain's property market continues to fight, and increasingly more positive news is keeping everyone's hopes up. Both the Spanish economy and real estate market may soon enough recover and thrive. So why don't you try to take advantage of the current state of the market to secure your own bargain property? It can be an investment worth making.