The Spanish economy has continued to be hit relatively hard by the global recession and with the abundance of property in its Mediterranean climate an ever-appealing prospect for potential investors, one expert believes there are still plenty of opportunities available in one of Europe's most popular destinations.

In an article for, Ronan McMahon, director of real estate advertiser Pathfinder, explained that conditions in Spain make its properties a cheap option for investment, with Granada in the south of the country highlighted as a particularly good location.

"Times are tough in Spain. Half her young are unemployed - if they haven't emigrated. Her economy, banks and real estate industry is in tatters," he said.

Prior to the economic downturn, house building in Spain rocketed as no one anticipated demand for properties to decline. Yet as recession took hold, the problem of oversupply meant prices dropped significantly, leaving many to take advantage of the prospects for investment.

Many Britons have opted to buy apartments or villas, spend the harsh British winters in Spain's warmer climes, and then return home when the temperature begins to heat up, renting their property to families travelling abroad in the school holidays.

Understandably, keeping their foreign assets safe is particularly important to those who essentially use them as a second home, making policies that cover any damage inflicted by visitors key to maintaining their condition.

Indeed, this is deemed a particular necessity for property owners who let to families with small children, and holiday home insurance is one of the means to prevent their investment turning sour.

"Granada escaped the major development seen on Spain's costas. This means that development has been tasteful, and there isn’t the major oversupply problem that we see elsewhere," Mr McMahon added.

As such, Spain appears to continue to offer a great opportunity for low cost investments that have the potential to be particularly profitable given the demand for villas and apartments among travelling Brits every year.