Spanish property to return to pre-recession levels by 2017?

The Cosmo Beach development, located near Marbella

Spanish house prices continue to fall and are now at €1,460 per square metre, more than 30 per cent below the 2008 peak of €2,100 per square metre, according to Trading Economics. But signs of improvement are appearing: figures from Tinsa show that Spanish property values fell 4 per cent in May year-on-year, the lowest year-on-year drop in May since 2008, suggesting a turnaround may soon be on the cards.

Foreign investment is already rebounding. According to the Spanish General Council of Notaries, overseas buyers made up 20 per cent of sales in the first three months of the year, with transactions jumping 27.2 per cent year-on-year.

Last week, Banco Sabadell, one of the country's largest lenders, even reported a surge in lending.

The high unemployment rate in Spain has meant that many British expats were unable to find work to sustain lifestyle, leaving an oversupply of property. But the strong pound is encouraging UK investment, with £1 now fetching €1.26, up from €1.14 this time last year. This means a €200,000 property now costs £158,730 compared with £175,439 at the start of August 2013.

Indeed, agent Your Viva told The Telegraph that 42 per cent of its buyers in 2013 were British, up from 31 per cent in 2012.

Agency EH International says that now is the "perfect opportunity" to buy property in Spain. Launching the Cosmo Beach apartment community near Marbella, with one, two and three bed apartments and penthouses available from €186,000, the development is the last on New Golden Mile, as the Spanish government no longer gives permission for building in the area.

Client Relations Manager Patrick Boyce tells TheMoveChannel.com: "The long-term British love affair with Spanish property is no secret. British investors already know all about the Marbella lifestyle from the boom years in Spain and they love the Cosmo Beach location."

Indeed, demand for Spanish property has been increasingly significantly this summer on TheMoveChannel.com. Interest climbed to a six-month high in June 2014, with Spanish property accounting for 7.47 per cent of enquiries, almost double the record low of 3.81 per cent recorded in April. With the UK making up the second largest group of visitors to the portal, Brits appear to be back on the familiar Costa beaches.

"In two or three years I believe we could be looking at a return to the pre-2008 situation," adds Boyce, "so this really is the perfect opportunity to acquire prime beachfront property with unbelievable views of Gibraltar and North Africa, before the market picks up again."