Statistics showed the number of home sales was 90,534 in the first three months of the year, a rise of 9.05% compared to the same period in 2014.

Rising transaction levels and recovering house prices suggest the Spanish property market is now starting to recover from its post-financial crisis slump.

However, Spanish house prices are still 31% behind their peak levels.

Foreign buyers were responsible for 2.22% of all Spanish home purchases in Q1.

House resales were significantly up, the report said. A total of 67,864 existing homes were successfully sold in the first quarter.

“The quarterly figures are the highest in the last eight quarters, showing a clear change of tendency in the market that began in previous quarters,” said the report.

“Indeed, it is the second highest quarter for sales in the last twelve (three years), and the third highest in the last sixteen quarters (four years).”

The report also showed how arrears and repossessions were falling.  Some 4,041 properties were handed back to the banks in the first quarter but overall repossession figures were down 2.91% on the three months.

Less than one-in-ten (8.8%) repossession proceedings affected foreign buyers.