Buying property in a new development or off plan has proved to be a very economic way to
purchase quality Spanish homes. Foreigners prefer it often to buying a second hand property. New
properties are being constructed at this very moment all around Spain. From small apartment
blocks to mansions, anything can be found in the market and almost anyone interested can find
a more than decent replica to their ideal Spanish property. Another attractive factor is the
relative low price level. Sometimes for an even cheaper price than resale properties you can
find brand new houses in a growing urbanization. The great availability and low cost are the
main factors that attract private buyers and investors to own a Spanish real estate.
For examples of new developments available all over Spain you can search our Spanish Property Database.
There are quite a few things to take into consideration so you should not rush into things
before you have a clear idea of what an Off Plan Property actually is. The term off plan
originally was used for properties that would be sold before being constructed. For this type of
real estate you will have only the architect's plan to guide you in your decision to whether buy
the house or not. Now when people speak about off plan properties it can also refer to a property
in construction up to its latest stage. Of course the earlier in the building process you buy a
property, the cheaper it will be. Nevertheless, you can still find relatively interesting prices
for properties that have just six months in constructions left. After that prices start to rise
to regular market ones.
For general information about property prices in Spain please see Spanish Property Prices 1995 - 2007.
Each country has its own procedure regarding an Off Plan Property and because of the nature of off plan real estate it is strongly recommended for you to obtain legal advice. In Spain, after the developer has secured the land and done all the planning paperwork, an Off Plan Property will undergo a variety of stages before it will be ready to live in. The developer will take care of getting the building approval, arrange a bank guarantee (aval) and the means of financing the process. They also must arrange all the contracts for the construction process. Once these elements have been settled, developers look for off plan investors. Since developers need to secure sales of some units for the project to start, you will find several properties in the plan that will be available at discounted rates. As the construction evolves and the discounted units are sold, the developer will progressively increase prices on the remaining properties bringing them closer to the current market value. The property market prices in Spain will naturally increase during an average two year construction period and thus your returns on an off plan Spanish property will rise even further.
For further information about buying off plan property including differences between buying off plan and second hand home please see the next section Buying Off Plan.
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