Spain looks like it is finally getting back on the right track, with a team from the International Monetary Fund (IMF) pronouncing that the country's financial reform has made "major progress". In a statement prior to the release of an official report, it was deemed that the "clean-up of undercapitalised banks has reached an advanced stage" and changes to the financial framework had either been "adopted or designed".

This is good news for those looking to invest in Spanish property, indicating that a period of stability could be just around the corner as the country enters the last stage of reform. According to the IMF delegation, the bulk of all measures for the entire program of reform have now been completed.

"Going forward, it will be important to maintain this momentum with strong completion of initiated reforms and continued vigilant oversight, as risks to the economy and hence to the financial sector remain elevated as Spain undergoes a difficult process of fiscal and external adjustment," the IMF said.

Although the country isn't out of the woods yet, there are certainly reasons for optimism. While Spain is undoubtedly blighted by toxic assets and a saturated property market, certain factions are actually performing well. The Real Estate Agency noted that second home demand remains strong in the country, reporting a 90 per cent rise in sale volumes during 2012.

UK buyers are continuing to be among the most active in Spain, but new markets are also entering the fray. A new survey by the Malaga Developer's Association revealed that Russians are now the second biggest group in Marbella investment, overtaking Germans who are traditionally dominant in the property sector.

Daniel Nilsson, regional manager of The Real Estate Agency, stated in January: "The last 12 months have been very positive for us having received over 5,200 enquiries for Spanish property and conducting some 1,600 viewings. From this we have seen the volume of deals and revenue rise by 90 per cent and 104 per cent respectively in 2012 compared with the previous year. Those are not the sales figures of a dead market!"



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