New data from global real estate advisor Savills shows total turnover in the investment market for property in Spain's retail sector increased three-fold in 2013, to 850 million euros in 2013 from 320 million euros in 2012.  The rise is mainly down to interest from international funds, suggesting that many institutional investors believe it is the right time to invest in the Spanish market, particularly in Madrid and Barcelona said Savills.  (Read more: Spain upgrade welcome but more work needed: Minister)  "Various international operators have or are currently preparing to enter the Spanish market due to the improved mid-term economic outlook. Some have been waiting for years for the right moment, others have pre-tested the market via online stores," said head of research Savills Spain, Gema de la Fuente.  In separate research, Savills also found occupancy in the Madrid office market is up 35 percent in 2013 from the previous year.  After Spain joined the euro, the country experienced a long boom, underpinned by a housing bubble, financed by cheap loans to builders and home buyers.  During the height of Spain's real estate boom, house prices rose 44 percent from 2004 to 2008, before slumping by over a third after the bubble burst. Spanish banks were also devastated by the housing crisis, as they had racked up billions in bad real estate loans.  .(Read more: Building in France: Like building castles in Spain?)  Investors have also had reason to eye the country more closely following it government bond upgrade from ratings agency Moody's from Baa3 to Baa2 in February, citing a "rebalancing of the Spanish economy towards a more sustainable growth model".  Spanish government yields fell to the lowest in eight years on Monday, with the yield on 10-year bonds falling to 3.3 percent, the lowest since January 2006.
Hedge fund billionaires George Soros and John Paulson have taken major stakes in Spanish property. Analysts and new data suggest that this could be a bet that's worth a closer look.