Buying Off-Plan Investment on the Costa del Sol

Buying Off-Plan Investment on the Costa del Sol



There are a number of reasons why you can expect above average returns on your investment on the Costa del Sol:

  • Your property is priced significantly BELOW today's market value.
  • (You literally buy your property at a discounted price)
  • Your equity is limited to only around 30-40% of your property's price.
  • (You only pay a fraction of the costs to secure your ownership rights)
  • Most developments offer the option to sell your property prior to completion, enabling you to benefit from any pre-scheduled price increases and additional market growth.
  • Your property rises in value as a result of being initially discounted at the start of the development.
  • During construction, the developer raises the prices so that they eventually reflect their true market value. Any general increase in market prices is a significant bonus!
  • Your only outlay is 30-40% of the purchase price, yet your gain is on the full market value.

The following example illustrates the typical gains to be made:

  • Off-Plan Purchase Price of Property
  • (Equivalent finished properties in the same area are typically selling for 20% more than this amount)    200,000 €
  • I.V.A. on Purchase Price @ 7%    14,000 €
  • Total Purchase Price    214,000 €
  • Typical contract and stage payments required during construction phase of project 40%    85,600 €
  • Expected Appreciation of Property from reservation to completion over 12 to 18 months of 20%    25,000 €
  • Return on capital investment if sold prior to completion of the property    30%


 N.B This example does not take into account any overall growth in the property market. Based on current market conditions, prices look set to continue to rise, which means that you can expect gains to increase by a further 10%!