For many years, new construction projects were paused in and around Marbella. This left the supply of property limited to older resale properties. In recent years, new build developments have returned and with it huge demand for modern-design, contemporary homes. Despite the increase in new construction projects, demand for this style of property and contemporary residential resorts significantly outweighs supply.
There are a number of advantages to buying off-plan properties in new build developments.
All new developments are required to be built according to current building regulations, which have been significantly tightened over the last 5 years, and are being rigidly enforced by the local authorities. Purchasing off-plan property is often carried out in stage payments, and the developer is obliged to ensure that every payment is covered by a bank guarantee, protecting purchasers’ funds. We carry out strict due diligence to ensure these fundamentals are in place before we consider offering a new project to our clients.
Buying off plan ensures your property is being built to the most up-to-date construction specifications with state-of-the-art technology and building techniques. This adds value to your property, making it more desirable. You also have the peace of mind that construction meets EU environmental regulations, that the very best materials are being used, and building works are completed to a high-quality standard.
Architectural styles and designs change over the years according to the tastes of buyers demanding property at any given moment. The current wave of requirements from buyers is for ultra-modern architecture using cuboid design, large windows to allow ample natural light to flood interiors and white washed exteriors mixed with Mediterranean and tropical landscaping. Presently, only new build developments are able to offer this style of architecture.
Another advantage of purchasing property off plan is the selection. You can choose which floor, layout, size, outdoor spaces, orientation and views. Purchasing in new developments later on or on completion, the selection of property is likely to be far smaller and more commonly the best units taken. Thereafter, resale properties will only be what becomes available on the market at any given time.
In many cases, the earlier on you purchase, you may also be able to influence the final layout and design of your chosen property, requesting personal alterations to make your property entirely, uniquely yours.
There are a number of price advantages that can be obtained when purchasing off plan. Firstly, prices are normally discounted earlier on in the construction process meaning you will pay a far lower price off plan than once the unit is built. Secondly, off-plan property purchase is usually in stage payments. This means you do not have to outlay the full purchase price in one payment but spread it over the construction period. Thirdly, the price you agree on at purchase is fixed. This means if construction takes 12 months and property values increase significantly in those 12 months, you are still only paying the lower price from one year earlier. This same fixed price advantage leads to the next benefit of purchasing off plan.
Because you are purchasing at the beginning or during the early stages of construction, you are benefiting of potentially 12-18 months of extra capital growth before the property has even been built. In addition, the most value is added to land and property during the construction period. Purchasing off plan, it is possible to earn instant equity of up to 25% upon completion. This means the value of your property upon completion is already significantly above the purchase price you paid for it.
If you are considering letting your new build property on completion, brand new, modern design homes are highly sought after and command more expensive rental values. This in turn earns you larger rental yields.
As with rental potential, brand new, modern-design properties are in high demand to buy. This coupled with the added value of greater capital growth since purchasing off plan, means the profit you will earn from selling your property for resale are equally greater.
Newly built properties should be delivered in impeccable condition and under Spanish law, the developer, constructor and architects are legally responsible to repair any defects that occur with a new property for up to between one and ten years depending on the defect in question. New build properties do not incur renovation or restauration costs, which can spiral into substantial sums.