There are currently around 1,050,000 newly built homes on the market that have not been sold, according to a new report from the Instituto de Práctica Empresarial (IPE), a Spanish business school that specialises in the real estate sector.

A big chunk of Spain’s property glut is located in just 2 regions – Andalucia and the Valencian Community – where the market was whipped up by demand from foreign buyers for holiday homes in Spain. Almost 40% of all the newly built properties languishing on the market in search of a buyers are located in these 2 regions. According to IPE there are 155,185 unsold new properties on the market in the Valencian Region alone.

The report warns that, “if the market does not come to life, and the housing stock keeps growing, by 2012 it will exceed 1.2 million empty and unsold units.”

Not all regions are struggling with the same scale of a glut. For example, in Extremadura, an inland region increasingly popular with foreign buyers looking for the ‘real’ Spain, there are just 8,000 newly built homes on the market.