According to the latest figures from the Royal Institution of Chartered Surveyors (Rics), the net balance score for the supply of such property stands at around 50, while anticipated demand registered a score closer to 40.
This indicates that, although there is a desire among investors to pick up distressed real estate in Spain, there will still be an oversupply in the next three months.
However, the Rics figures show Spain is in a much stronger position than some of its eurozone counterparts, such as Greece, Ireland and Italy.
In Greece and Italy, demand is expected to be less than half of the total supply of distressed assets, for instance.
Last month, Liam Bailey wrote in an article for Nuwire Investor that people searching for a Spanish property need to look at values in the context of the local market to determine whether they are being sold for a fair price.