Institutional investors are regaining confidence in Spain’s property market, a new study by KMPG reveals.

Asked by the consultancy to identify the best global opportunities for property investment, 500 fund managers ranked Spain second only to Germany. Seventy-one per cent of the respondents identified Germany as a top opportunity, compared to 45 percent for Spain, which was rated above the U.K., France and the U.S.

Investors cited Spain’s relatively stable economy and “improved access to financing and development of capital markets.”

In general, Western Europe was seen as the best target for property investment, thanks to “stable economic conditions” and an improving debt situation.

Investors appear ready to take on more risk, with “opportunistic strategies” attracting more interest than investment in real estate debt, which was favored by only 10 percent of the respondents.

Office space is the overwhelmingly favorite sector, followed by retail, according to KPMG’s survey.

Investor sentiment surveys don’t always translate into actual deals, it’s important to remember. But there are signs that confidence is growing in Spain’s property markets, at least internationally. The number of foreign buyers of residential property increased 9.8 per cent in 2013, according to the latest data from the Statistics Department of the General Council of Notaries.