The Spanish property market has rebounded to such an extent that tens of thousands of new homes are now needed, says a report from Aedas Homes.

The report estimates that up to 140,000 new-build homes are needed to satisfy demand, now that the surplus of unsold real estate has reduced dramatically. New build homes now account for 18 per cent of all residential property sales in Spain, added the report.

New unsold housing stock fell in 2018 for the ninth consecutive year, bringing the total down by 29.3 per cent from its peak in 2009. Around 92,000 new homes were sold in Spain in 2018.

Overseas buyers are expected to account for between 20,000 and 30,000 of the new build properties, with demand especially high in Catalonia, the Basque Region and the Balearics, where the stock of unsold homes fell by 10 per cent in 2018.

Unemployment figures in Barcelona, meanwhile, have also fallen again: the number of jobless people in the city is now lower than at any time since 2008, with just 350,000 people out of work. More than 6,000 jobs in the service sector contributed to the figures.