When searching for property on the Costa Blanca, you'll find two main options: new build developments and resale properties. While resale homes can offer charm and established locations, new build properties offer significant financial and practical advantages that many international buyers overlook.

Here's why savvy buyers are increasingly choosing new construction — and why the numbers often make it the smarter investment.

Launch Prices: Buy at 20-40% Below Completion Value

This is the biggest advantage most buyers don't know about. Developers launch projects at significantly lower prices to generate early sales and build momentum. As the project progresses and units sell, prices increase with each phase.

Real Example:

A development might launch 2-bed apartments at €195,000. By completion 18 months later, the last units sell for €260,000 — that's over 30% appreciation before you even get the keys.

Early buyers essentially lock in today's prices for tomorrow's property. With resale, you pay full market price — no room for built-in appreciation.

10-Year Structural Guarantee

Spanish law (LOE - Ley de Ordenación de la Edificación) requires builders to provide mandatory guarantees on new construction:

10 Years	Structural defects (foundations, load-bearing walls)
3 Years	Habitability issues (waterproofing, insulation, plumbing)
1 Year	Finishing defects (paintwork, fixtures, fittings)

With resale properties? You buy "as seen." Any hidden defects are your problem. That damp issue, those foundation cracks, the leaky roof — all at your expense.

Lower Purchase Taxes

New builds and resale properties are taxed differently in Spain — and new builds often work out cheaper:

New Build Taxes

• IVA (VAT): 10%
• AJD (Stamp Duty): ~1.5%
• Total: ~11.5%

Resale Taxes

• ITP (Transfer Tax): 8-10%*
• No stamp duty
• Total: 8-10%

*ITP varies by region. Valencia/Alicante region is 10%.

While resale appears cheaper on tax alone, remember: new builds include everything brand new (no renovation costs), and you're buying at launch prices that can be 20-40% below completion value.

Better Mortgage Terms

Spanish banks prefer financing new builds. Why? Lower risk. The property is brand new, has a guaranteed valuation, and comes with those legal guarantees.

New Build

• LTV up to 70-80%
• Competitive interest rates
• Straightforward valuation
• Developer-bank partnerships

Resale

• LTV often limited to 60-70%
• Rates can be higher
• Valuation uncertainty
• More documentation required

Many developers also have preferred bank arrangements that streamline the mortgage process for their buyers.

Spread Payments Over Construction

Off-plan purchases let you spread your investment over 12-24 months:

Reservation deposit€3,000 - €10,000

Contract signing (30 days)20-30%

During construction20-30%

On completion20-40%

This gives you time to save, sell existing property, or arrange financing. With resale, you need the full amount ready within weeks.

Customize Your Property

Buy early enough in the construction process and you can often personalize your new home:

✓Choose flooring types and colors
✓Select kitchen cabinet styles and countertops
✓Pick bathroom tiles and fixtures
✓Upgrade appliances or air conditioning
✓Modify layouts (in early stages)

With resale, you're stuck with the previous owner's taste — or paying €20,000+ to change it.

Modern Specifications & Energy Efficiency

New builds meet current building standards — something older properties simply can't match without expensive renovations:

✓Ducted air conditioning throughout

✓Double/triple glazed windows

✓Modern thermal insulation

✓Energy efficiency rating A or B

✓Pre-wired for smart home tech

✓Modern plumbing & electrics

✓Contemporary kitchen appliances

✓Designer bathrooms included

Better energy efficiency means lower utility bills — increasingly important as energy costs rise. Most resale properties have E, F, or G ratings.

Move In Ready — No Renovation Surprises

That "charming" resale property often needs work. New kitchen? €15,000. New bathrooms? €8,000 each. Rewiring? €5,000+. Suddenly your "bargain" isn't so cheap.

Hidden Costs of Resale:

• Outdated electrics needing replacement
• Old plumbing with potential leaks
• Worn kitchen and bathrooms
• Single glazing (hot summers, cold winters)
• No air conditioning installation
• Potential damp or structural issues

New builds? Everything is brand new, under warranty, and exactly as specified. No nasty surprises.

Bank Guarantee Protection

When buying off-plan in Spain, your stage payments are protected by bank guarantee. If the developer fails to complete the project, you get your money back with interest.

Legal Protection (Law 20/2015):

Spanish law requires developers to provide bank guarantees or insurance for all payments received before completion. Deposits must be held in special escrow accounts. This protection doesn't exist with resale purchases.

Your investment is secure throughout the construction period — something the 2008 crisis taught Spain to mandate.

Easier Resale & Higher Rental Income

When it's time to sell or rent, modern properties attract more interest and command better prices:

For Resale

• Modern design appeals to wider market
• Good energy rating increasingly important
• Remaining warranty transfers to buyer
• No "dated" features putting buyers off

For Holiday Rentals

• Better guest reviews
• Higher nightly rates
• Lower maintenance costs
• Resort amenities boost appeal

A 10-year-old modern apartment will still feel contemporary. A 10-year-old "traditional" property often feels outdated.

New Build vs Resale: Direct Comparison

Factor	New Build	Resale
Price appreciation	✓ Buy at launch prices	✗ Pay market rate
Structural guarantee	✓ 10 years	✗ None
Purchase tax	10% IVA + 1.5% AJD	8-10% ITP
Mortgage terms	✓ Favorable	~ More restrictive
Payment flexibility	✓ Staged payments	✗ Full amount upfront
Customization	✓ Choose finishes	✗ Take as-is
Energy efficiency	✓ A/B rating	✗ Often E/F/G
Renovation needed	✓ Move-in ready	✗ Often €20k+
Deposit protection	✓ Bank guaranteed	~ Contract only
Availability	~ Wait for completion	✓ Immediate

When Might Resale Be Better?

To be fair, resale properties do have advantages in specific situations:

•Immediate availability — no waiting for construction
•Established areas — mature gardens, known neighbors
•Character properties — traditional Spanish fincas
•Prime locations — beachfront where no new land exists

However, for most buyers prioritizing value, security, and modern living — new build is the clear winner.

Not All New Builds Are Equal

Location, developer track record, and timing all impact your investment potential. Some areas consistently outperform others for capital growth, while certain developments offer better value than comparable projects nearby.

We specialize in matching buyers with the right development for their budget and goals — whether that's maximizing rental yield, long-term appreciation, or finding the best lifestyle fit.

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Frequently Asked Questions

Is it safe to buy off-plan property in Spain?▼

Yes, Spanish law provides strong protections for off-plan buyers. All deposits and stage payments must be secured by bank guarantees or insurance policies. If the developer fails to deliver, you get your money back with interest. Always ensure your lawyer verifies the bank guarantee exists before making any payments.

What taxes do I pay on new build property in Spain?▼

New builds are subject to 10% IVA (VAT) plus approximately 1.5% AJD (stamp duty), totaling around 11.5%. This compares to 8-10% ITP (transfer tax) on resale properties. While the headline rate is slightly higher, new builds include everything brand new with no renovation costs.

How much cheaper are launch prices compared to completion?▼

Launch prices are typically 20-40% below completion prices, depending on the development and location. Developers increase prices with each construction phase and as units sell. Buying in Phase 1 or 2 offers the best value, though you'll wait longer for completion.

What guarantee do I get with a new build in Spain?▼

Spanish law mandates three guarantee periods: 10 years for structural defects (foundations, load-bearing elements), 3 years for habitability issues (waterproofing, plumbing, insulation), and 1 year for finishing defects (paintwork, fixtures). These guarantees are backed by mandatory insurance policies.

Can I get a mortgage for off-plan property?▼

Yes, and banks often prefer new builds. You typically arrange the mortgage to complete when the property is ready — the mortgage funds the final 50-60% payment at completion. Many developers have partnerships with Spanish banks that can streamline the process.

What happens if construction is delayed?▼

Your purchase contract should specify the completion date and penalties for delays. If delays become significant, you may be entitled to compensation or contract termination with full refund. The bank guarantee protects your deposits regardless of delay reasons.

Are new builds more expensive than resale per square meter?▼

On paper, yes — new builds typically cost more per square meter than resale. However, this doesn't account for launch price discounts (buying early), renovation costs on resale (often €20,000+), or energy efficiency savings. When comparing total cost of ownership, new builds often work out better value.

Can I choose my own finishes in a new build?▼

Often yes, especially if you buy early. Many developers offer selection packages for flooring, kitchen cabinets, tiles, and fixtures. Some allow layout modifications before construction reaches that phase. The earlier you buy, the more customization options available.

What amenities do new build developments include?▼

Most Costa Blanca new builds include communal swimming pools, landscaped gardens, underground parking, and storage rooms. Many also feature gyms, padel courts, children's play areas, and gated security. These amenities are shared among owners and maintained through community fees.

Is new build better for holiday rentals?▼

Generally yes. Modern properties with pools, air conditioning, and contemporary design attract better reviews and higher rental rates. Lower maintenance costs improve profitability. Resort-style amenities increase booking appeal. Energy efficiency reduces utility costs between rentals.

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New Build vs Resale Property in Spain: Which Should You Buy?

New Build Advantages at a Glance

Launch Prices: Buy at 20-40% Below Completion Value

Currently at Launch Prices

Launch Pricing

Bank Guaranteed

Choose Finishes