British people with a holiday home in Spain could soon be considering selling their apartment or villa as interest rates in both Spain and UK rise - making the possibility of a fall in Spanish property prices more likely.

Despite facing fresh challenges every year from new and old competitors to take away market share, Spain increased her number of visitors in the first couple of months of 2007 for what could be a good year for a country that has been the favourite destination for Europeans for nearly fifty years.

Buying a property on the Spanish island of Majorca has been popular for several decades now, with many Europeans who have holidayed on the Spanish island deciding to buy a second home for holidays, a business, or for retirement.

Worried tourism bosses in Spain are winning the battle for European holidaymakers, with an impressive 5 per cent rise in visitor numbers for the first quarter of this year. The country welcomed over ten million holiday makers in January, February and March - normally viewed as off peak months.

Spain's Majorca real estate has been popular for several decades now, with many Europeans who have holidayed on the Spanish island deciding to buy a second home for holidays, a business, or for retirement.