Standard & Poor's, one of the leading credit rating agencies has stated that it is likely to be a number of years before the Spanish property market finds an equilibrium between supply and demand. However, on a more positive note, S&P estimated that the price of properties in Spain is unlikely to fall considerably over the course of the next 18 months whilst sales are likely to continue picking up.

The comments from Standard and Poor's come on the back of the recent figures released by the Spanish National statistics Institute which showed the Spanish property sector now counting the 12.5% of GDP. S&P went on to say that prices in Spain had fallen considerably from the highs of 2007, much of which could be explained by the low number of property sales in Spain, which fell by almost 60% from the 2007 figure.

Standard and Poor's noted that with over 2.5 million new properties being built in Spain between 2002 and 2007, it was likely to to be some years before the demand fully absorbed the excess supply of property in Spain. Overall however, the comments from Standard and Poor's offer cause for optimism in the Spanish property market, and are just one of a number of reports which show early signs of a recovery in the months to come.