The main advantage of buying a property off-plan is the price. According to the newspaper *El Economista*, it is estimated that properties purchased in this way are usually 5 per cent cheaper for owners.
Some of the benefits of buying a property off-plan include the option to personalise the purchase and, for example, easily add features such as a storage room and a parking space. Furthermore, this type of purchase offers other advantages:
- The guarantee of modern, efficient finishes that comply with the Technical Building Code (CTE).
- It usually features communal areas such as a swimming pool or services such as a concierge.
- It generally represents a saving compared to completed new-build properties already on the market.
- If you do not have a particularly large savings buffer, it is possible to pay for your future home bit by bit, until you have saved up at least 20 per cent of the final purchase price, bearing in mind that mortgages usually cover a maximum of 80 per cent of the valuation of your primary residence and 70 per cent of a second home.
- The year and a half or two that the construction takes can be the perfect opportunity to save, improve your employment situation or increase your income.
If we calculate the amount we spent on buying an off-plan property two years ago in 2020 and the current price of that same property, we can see that, given the price rises we have experienced over the past two years, the current cost of the property is higher.
So, if you bought a property off-plan two years ago, you can say that your investment was a profitable one and has already generated a profit, as the current valuation of that same property is higher.
Some new-build housing projects came to a virtual standstill over the last two years. However, these days, when buying off-plan, it is easy to find developments offering off-plan apartments, some of which are available at a good price.
We know that times are changing and the prices of all basic commodities are rising significantly; this affects the construction sector, as the materials used are also becoming more expensive. This makes it clear that now really is the perfect time to buy a property off-plan, as the potential for new-build properties to appreciate in value is something to bear very much in mind when investing.
Is now a good time to buy rather than rent?
Although the long-term commitment involved in buying a home may give some people pause for thought, according to various experts, the current climate favours home ownership over renting.
The Bank of Spain suggests that buying is now more cost-effective, as indicated by the bank’s analysis of the national savings rate. This is due to the recovery of the property market following the crisis. In contrast, tenants are finding themselves having to set aside more and more money to pay their rent.
Some 36 per cent of tenants would have sufficient income to buy a home, but do not have enough savings. This figure rises to 41 per cent for young people (aged between 18 and 35), which highlights the greater difficulties this group faces in accessing home ownership due to their inability to save."
In conclusion, if you decide to buy an apartment off-plan, you have more advantages than buying a second-hand apartment, both in terms of the payment and the knowledge that you are choosing your home and will be the first to live in it.
At Inseryal by Marina d’Or, we have been active in the development, construction and sale of new-build apartments for over 40 years. We are currently focusing on the sale of apartments at Oropesa del Mar / Cabanes; these are new-build apartments situated right on the beachfront, which adds significant value should you wish to purchase an apartment as an investment. We sell these apartments off-plan and they are handed over fully furnished, fitted out and decorated, ready to move into, with an innovative and contemporary design.
If you’re considering buying off-plan, take a look at our new-build developments at Oropesa del Mar.
When you buy off-plan, the money paid before the deed is protected by law. How it works is explained in a separate guide: arras contract: what it is, types and guarantees.
Once the home is finished, the document that authorises occupying it and connecting the utilities is a different one. It is explained in a separate guide: cédula de habitabilidad and responsible declaration of occupancy.