Spanish sales increase for the first time since 2007

Homes sales in Spain have increased for the first time since 2007, according to figures released by the National Statistics Institute (NSI).

NSI revealed that the number of transactions taking place in the country climbed by 6.8 per cent in 2010, marking a potential turnaround in fortunes for the struggling sector.

However, the transaction levels were still significantly down on those seen at the height of the market in 2007. Property sales reached 441,386 in Spain last year, compared to 775,300 at the market's peak.

When the financial crisis, combined with a glut in supply caused by overdevelopment of many tourist areas, caused the property bubble in the country to burst, sales began to decrease rapidly.

And as unemployment continues to rise in Spain, demand for property is expected to be stifled.

Concerns surrounding the state of the national economy are also weighing heavy on buyers minds and causing many individuals to hold off buying property in Spain, Fitch Ratings has forecast.

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