The Spanish authorities, lead by the Valencian Region, are hoping that foreign buyers will take advantage of the market to invest in real estate and help reduce the stock of new homes for sale on the coast.

A crisis for Spain but an opportunity for foreign buyers to bag a bargain on the Spanish coast. That is the way at least 9,200 foreigners who bought holiday homes on the Costa Blanca last year must be looking at the situation. Buyers were led by Russians, Britons and Norwegians, who made up 80pc of the market. This is a sign the foreign market is starting to recover, albeit slowly.

José Vicente Dómine, Director General of Public Works for the Generalitat (Valencian regional government), was quick to point out that more foreigners bought homes on the Costa Blanca last year that in Madrid and Andalusia combined, and almost as much as Catalonia, the Balearics, and Murcia combined.

According to Dómine’s figures, obtained from Spain’s notaries, home sales to foreigners last year by key region were as follows: Catalonia – Costa Brava / Dorada 5,200; Malaga – Costa del Sol 4,600; Balearics 2,700, and Murcia 1,500.

The Generalitat recently set up a commission to help sell more homes to foreigners.