The choice between a brand new project or an existing home determines not only your immediate living pleasure, but also the return on investment. With years of experience on the Costa del Sol, I am happy to help you make this important decision. Because while both options have their charms, there are significant differences to consider.
Pros and cons of new construction and resale
New building - advantages | Existing property - benefits |
✓ Modern architecture and technology | ✓ Immediately available |
✓ Energy-efficient | ✓ Established locations |
✓ 10-year warranty | ✓ More room for negotiation |
New construction - disadvantages | Existing property - disadvantages |
✗ Higher acquisition costs | ✗ Possible renovation costs |
✗ Waiting time to completion | ✗ Higher energy costs |
✗ Less flexible in adjustments | ✗ Possible hidden defects |
New building: modern comfort and carefree enjoyment
The Costa del Sol is currently experiencing a surge in high-quality new-build projects, from luxury flats to detached villas. These new developments offer not only the latest in architecture and design, but also in comfort and sustainability.
Modern new-build homes are designed with the contemporary buyer in mind. Expect open living spaces with plenty of natural light, spacious terraces and state-of-the-art technology. The latest energy-saving measures also ensure lower monthly costs.
An additional advantage is the 10-year guarantee that developers in Spain have to offer on structural elements. This gives extra security with your investment.
Existing property: character and immediate availability
An existing property often offers what is hard to find with new construction: a prime location in an established neighbourhood. Whether you are looking in the bustling centre of Marbella or in the charming old town of Estepona, existing homes are often in the most desirable locations.
The big advantage is that you see exactly what you are buying. The neighbourhood is developed, the gardens are mature and you can immediately assess what it is like to live there. Moreover, with existing properties you can often negotiate the price more sharply, especially if some modernisation is needed.
Financial considerations and taxes
The cost side is an important aspect in your decision. Here is an overview of the main differences:
Cost item | New building | Existing property |
VAT/taxation | 10% btw | 7% transfer tax |
Notary fees | +- 1% | +- 1% |
Registration fee | 1,2% | Included in transfer tax |
Total additional costs | +- 13,2% | +- 9% |
Although purchase costs are higher with new builds, you often save on renovation and maintenance costs in the first few years. With an existing home, you better factor in modernisation costs, although you can spread them out over time.
Location and timing: what suits your plans?
Your personal situation plays a big role in the choice. Do you want to be able to enjoy your Spanish home right away? Then existing property is the logical choice. The lead time from purchase to key transfer is usually 6-8 weeks.
With new builds, you have to expect construction times of 18-24 months. On the other hand, you can often pay in stages and have more influence on the finishes.
Guidance from Alness: from selection to key handover
Whether you choose new construction or existing property, a worry-free purchase starts with the right guidance.
At Alness, we help you:
- Weighing the pros and cons for your specific situation
- Choosing the right location to suit your needs
- In technical inspections and legal audits
- With the negotiation process and administrative handling
Want to know more about the possibilities in new construction or existing property on the Costa del Sol? Contact us for a personal interview in which we discuss your needs and options.
