A clear, experience-based look at how resale and new build homes differ on the Costa del Sol, from the feel of established communities to the appeal of fresh modern design. A straightforward guide to help buyers choose the option that best fits the way they want to live here.
Resale vs New Build Property on the Costa del Sol
Costa del Sol property buyers often ask us whether or not they should be looking to buy brand new property off plan, or whether they would be better to buy a second hand resale property. At first sight it sounds like a very straightforward question with an easy answer, but in reality the decision covers a lot of points that really need consideration.
The Marbella and Costa del Sol property market offers a strong mix of off-plan new-build projects together with recently completed developments and also lots of well-established communities. Each offers something different, and each comes with its own set of considerations that buyers need to think through but do not always see in the glossy marketing brochures.
We are always at pains to try and give a straightforward, experience-based opinion, and here are some of the points that we bring to buyers’ attention in helping them make a decision.
The appeal of new build and off plan homes
Without doubt the idea of buying something new has a definite attraction. This is combined with contemporary floorplans, clean lines and efficient up to date systems and technology… there is also the confidence that, as a buyer, you get from being the first person to use the property. For some buyers that fresh start feeling is the main factor.
Buying off plan can also work well in certain situations. If the timing is right, the developer is strong, and the wider market supports it, early buyers sometimes benefit from an uplift in price and values from the reservation stage through to completion. That is part of the reason these properties are often spoken about as “investments”, although the word does tend to get used far more loosely than perhaps it should.
Off plan is not necessarily risky, but it does require a careful approach. Buyers need to be cautious as they are buying based on plans, a show home and, very often these days, AI renders. The quality of the product eventually delivered can vary from the quality that has been promised.
Buyer expectations can sometimes drift away from reality over the two to three years it takes to build. Delays are not unusual and hand over dates can vary.
Another valid point to consider is that life can move on and an individual buyer’s circumstances can change while the building is under construction. This is one reason why we see a handful of almost new resale properties appearing as soon as the new development is finished. It is not necessarily because something is wrong with the property but sometimes just because people’s needs have changed.
Where resale properties come into their own
For many buyers there is a fundamental need to actually see and touch the product that they are buying. This gives the comfort of knowing exactly what you are buying. You are able to stand on the terrace and see the views and orientation. You can hear what is going on in the background and you get a feeling of the space. You can walk through the community, see the pool and get a genuine impression of what you are buying into.
Buying resale therefore carries a different level of certainty in that what you see is what you get.
• You do not have to wait for the product to be built.
• A finished product means no ongoing construction noise.
• You know what the running costs will be.
• The community is established.
• All the paperwork will already be in place.
An additional factor to consider is also the question of what is the real value of the property. A resale property sits on the market at the current time at the price that the market will currently support. You decide what you are prepared to pay and, provided you and the owner are in agreement, that is the sale price.
A new home tends to carry a fixed price often with a “New Build Premium” because of marketing, design and novelty. It is fair to say that, as with a new car, the premium is not always preserved when you come to resell. It is that uncertainty which makes some buyers prefer to focus on homes that have already found their natural place in the market.
There is also a middle ground area that is often overlooked
There is a sweet spot between buying off plan and buying older resale properties which can be very interesting for some buyers. This is particularly attractive for those who want to enjoy the new design and updated efficiency offered by the new property but actually prefer the comfort of seeing the finished product.
The build is usually completed, snagging is already done, and the community is beginning to settle down. The landscaping has started to mature, and the unknown factors reduce considerably. For this we are talking about the resales that come onto the market because the original buyer’s circumstances have shifted and not because the development has failed to meet expectations.
Ready to enjoy
A new development can feel fantastic once it is fully occupied and running smoothly. It is fair, however, to comment that in the early period after hand over it is a very different experience from walking into a community that has been up and running and established for years.
With a resale property you know exactly what the community is all about. The gardens are mature, the costs are understood, and you know what the surroundings of the property are.
With an off plan property, it is fair to say that the amenities may be delivered in stages, i.e. the pool bar, gymnasium and indoor pool may not be available when the first phase is handed over. The later phases of the development may still be under construction and therefore the accompanying noise and dust may be part of your life in the short term. We often get the comment from early residents that they feel a little isolated until more of the neighbours have moved in. This is not a criticism of new development but it is a part of the natural life cycle that you might experience.
Energy efficiency and running costs
It is fair to comment that new builds generally have far better energy ratings and more efficient systems than older property.
It is a real positive but also can be balanced by the fact that many owners of older properties on the Costa del Sol have updated their properties to modern standards.
If you are not using the property 12 months of the year, the difference in energy use between the older property and the newer property may not be as much as it would be if you were living in it for the whole year.
It is also worth commenting that there are now a significant number of older properties which have been renovated and are now offered for sale, fully furnished and ready to move into with new fittings and installations.
Legal clarity and peace of mind
One of the biggest differences between a resale and an off-plan property is simply the stage of the paperwork. With a resale property you can see the full picture and you make a decision based on everything that is there.
With an off plan property, you are often trusting a process. Off plan can also be subject to licences and delays before the start of building. It is important to be aware of the exact stage at which you are making your commitment.
Both types of purchase can be completely safe and secure when handled correctly, but buyers do need to be aware of the distinction, particularly with regard to licences, guarantees, delivery schedules and payment structures. Whether buying off plan or on the resale market, buyers are advised to take independent legal advice.
So what is the right decision for you?
There are a few simple considerations that you can make that will help you make the decision.
- If you need certainty and immediate delivery of the property, then resale will be the right solution for you.
- If you like the idea of being the first in and shaping your home from scratch, then a new build property or an off plan project might well be the right answer for you.
- If you are drawn to the modern design but prefer to see the finished product then a recently completed resale property would work well for you.
- Whether you are looking for a long-term investment or a lifestyle choice, your answer can help shift the balance.
In our opinion the most important thing for all buyers is to recognise that both options have their place. You must take a long sensible look and decide what is the best solution to help meet your requirements and give you the most pleasure.
Whatever type of Costa del Sol property you are thinking of buying, we are here to help and advise, and to find you the right option to meet your needs. We are more than happy to talk it through with you without any obligation and look forward to helping you. Please call us on (0034) 952 90 52 00, WhatsApp us, or email info@michael-moon.com.
