There ought to be concerns about the hundreds, if not thousands of illegal homes that are being built without planning permission in Spain, especially in the south. The large numbers of homes does show an increased demand for holiday homes in Spain from foreigners, especially the British.

The data also confirms that Spain continues to be a prominent holiday home destination, leading the way with France as being the most desirable European country for second homes. Combinations of pensioners, professionals and traditional holidaymakers have been and continue to set their sights on Spanish properties. Even the buy to let market in Spain seems to be booming and the volume of investors looking abroad for investment opportunities seems to grow. The demand for housing is so strong that many of the properties are not fully legal or authorised by the local government.

Recent data confirms that the Costa del Sol is particularly noted for its quantity of illegal builds. Taking the issue very seriously, regional authorities are considering demolition. Also, buyers who were trapped into buying illegal properties will want to be compensated, but it is impossible to state the extent to which this would happen, and how adequate any compensation would be. The authorities are introducing new legislation to prevent the illegal trend form happening.

Supporters believe that buyers should be offered help rather than penalising them. Recent data suggests that in 2004 55,000 people moved into Spain, some 14 percent of the total number of people (345,000) who moved abroad altogether, and it is thought that nearly 68,000 Brits currently own a holiday home in Spain. Problems apart, larger cities continue to attract buyers, with over two million people having moved into urban Spanish areas since 1998.