The Secretary of State for Housing, Beatriz Corredor, said today that Spain's excess unsold homes, which currently stand at 700,000, would be absorbed by 2013 or 2014.
Her comments were made in Frankfurt today as she presented the Spanish property market trends for investors and intermediaries.
Corredor (pictured) explained that there was currently "a high percentage of 'stock', much of it being holiday homes, with a shortage of first homes for families" expecially in some major cities.
The minister confirmed that Spain received 8.8 million German tourists in 2010, representing 16.7% of the total, of which nearly 7% own a home in the country.
The Spanish housing minister began a series of overseas visits earlier this month, providing information about the current situation of Spain's real estate sector to audiences in London, Amsterdam, Paris and Frankfurt, and in the coming weeks will be in Moscow and Stockholm.
"We believe it is a good time to invest in the Spanish property sector because there has been a significant drop in prices because there is ample good quality housing stock available, especially on the coast, and the advantages of Spain as a competitive destination tourism," said Corredor.
Over 60% of unsold empty homes are concentrated along the coast, according to government figures. Germany was one of the European countries with the greatest investment in Spain in 2010, representing 7.73% of all home purchases made by foreigners, behind the British and the French.