The Spanish property market has made a promising start to 2011 according to new figures from the National Statistics Office (INE).

The latest figures show the market has now expanded 27% since the low of February 2009 and sales, excluding social housing, are up an average of 9.9% in the year to February.

Although transaction volumes are down 42% from February 2007, there seems to be a growing sense of optimism in the market.

In the latest Global edge survey, 57% of Spanish-based readers reported that sales were better than this time last year, with 29% saying sales were about the same and only 14% reporting sales were worse.

José Prado, President of Malaga’s Association of Constructors and Developers takes the optimism one stage further with a prediction of a return to stellar house price growth in a recent interview in the Spanish press.

“There are very few new homes coming onto the market, which will bring down the total number for sale and drive up prices 20pc to 30pc in 2 years,” he said.

The English language media also seems to have postponed its Spanish property bashing with a number of positive articles appearing in the last few weeks in the Telegraph and Citywire

In some coastal areas, overseas buyers seem to be returning to the market. Sales to foreign buyers in Malaga are up 39%, according to the Ministry of Development.