The Spanish market is continuing to attract foreigners, with official housing figures revealing that the number of properties sold to overseas buyers increased for five consecutive quarters between 2011 and 2012.

It was the third quarter of last year that saw the most substantial growth in the number of sales to people from outside of the Mediterranean country, with an 18 per cent jump from the equivalent quarter in 2011 and a total of 8,803 transactions.

And considering that this was preceded by a 16.2 per cent rise in Q1 of 2012 and a 15.3 per cent leap in the second quarter, it appears that demand for Spanish properties among overseas buyers continues to go from strength to strength.

However, as the number of people looking to bag themselves an apartment or villa in Spain increases, Nick Stuart, director of estate agent Spanish Hot Properties, explains that this could potentially lead to a shortage in the market.

"With the domestic market in hibernation, some of the responsibility for recovery has fallen on to international shoulders but, certainly in the Marbella area, they tend to want the very best homes on the market and these are in short supply," he commented.

"There are very few top quality modern villas or frontline beach apartments available and the old fashioned Andalucian style-finca doesn't have the same appeal any more. It really is slim pickings."

As demand for prime Spanish properties continues to build, it seems that buyers could soon find themselves with few options - especially once prices start to recover.

But for those who have been able to grab a slice of the market while conditions in the eurozone make Spain a favourable country for investment, it's important that they protect their prized assets with the appropriate holiday home insurance policies.