Research from overseas mortgage specialists Conti said that 45% of all mortgage enquiries in second quarter of 2015 were for Spanish properties.
It said the growing strength of the pound against the euro and better economic conditions had tempted more people to the country.
Close behind was France which accounted for almost a third (31%) of enquiries then Portugal, with 18%. Conti said that favourable conditions meant a €200,000 holiday home now costs £142,857 compared to £158,228 a year ago, a saving of £15,371.
Prices in Spain have fallen by 50% since the economic crisis but Spanish bank La Caixa issued a report that suggests the market has now bottomed out.
Data from Eurostat, the European Union statistical agency, suggested prices have started to rise following this long period of decline.
Clare Nessling, director at Conti, said: “With the strong pound boosting buyers’ budgets, a little slice of life overseas is proving to be even more tempting, especially when you compare the cost with overheated parts of the UK market.
“Record low borrowing rates and bargain prices are also luring investors to overseas property markets, with a sizeable shift in interest for Spain in particular over the last six months.”