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Regions such as the Costa del Sol, Balearic Islands, and major cities like Madrid, Barcelona, and Malaga continue to lead in demand. For buyers looking for value, off-plan properties remain one of the best ways to enter the Spanish property market.
In this guide, Realista shares the reasons to invest in off-plan properties in Spain while covering price trends, legal updates, and key regional insights.
Investing in Off-Plan Properties in Spain
Before highlighting the investment trends and benefits of buying off-plan properties, it is better to understand this investment strategy.
Off-plan properties are real estate projects sold by developers before completion. These properties are often sold at various stages of construction, sometimes even before the building begins. Buyers typically rely on detailed plans, renders, and specifications provided by developers to make informed decisions.
The process usually involves reserving a property with an initial deposit and paying in instalments as the project progresses. Once the development is complete, the buyer gets the ownership and can either move in, rent out the property, or sell it at a profit.
Off-Plan Property Trends in Spain
Spain’s housing market saw exceptional growth during 2025. By the third quarter of the year, nationwide property prices had increased by approximately 11.7% to 12.7% year-on-year. Coastal markets outperformed the national average, particularly in areas with limited new supply.
Off-plan pricing continues to offer a clear advantage. Buyers who acquire properties early typically pay less than those who buy completed properties. In prime locations such as the Costa del Sol, many off-plan units have recorded double-digit price growth by the time construction is completed.
Future Outlook
While the rapid growth seen in 2024 and 2025 is beginning to moderate, the outlook for 2026 remains very positive. Leading institutions such as BBVA and CaixaBank forecast sustainable annual price growth of between 5% and 7%.
This stabilisation does not signal a downturn. Instead, it shows a more balanced market that favours long-term investors. For off-plan buyers, this is particularly attractive, as locking in prices at today’s levels is a smart long-term strategy.
Advantages of Investing in Off-Plan Properties in Spain
Some advantages of investing in off-plan properties are listed below.
Attractive Pricing
One of the key reasons to invest in off-plan properties in Spain is the pricing advantage they offer. The prices are low at launch, especially compared with completed properties. Early buyers benefit from the most favourable prices, leading to significant capital gains by the time the property is ready.
Diverse Locations
Spain offers a wide range of off-plan opportunities, from vibrant urban centres to peaceful coastal towns. For instance, the Costa del Sol is renowned for luxury developments, while the Balearic Islands offer exclusive properties with stunning sea views. Cities like Madrid and Barcelona are also seeing a surge in off-plan developments, particularly in neighbourhoods undergoing redevelopment.
High Capital Appreciation
The potential for capital appreciation is another significant advantage of investing in off-plan properties. As Spain continues to attract tourists, retirees, and expatriates, property values are expected to rise, especially in desirable areas. Investors who purchase off-plan properties early in the development process can benefit from this appreciation, potentially achieving high returns.
Favourable Payment Terms
Developers often offer payment schedules that allow buyers to spread out the cost over several months or years. Some developers even offer extended payment terms post-handover, making it easier for buyers to manage their finances.
Strong Rental Yields
Spain is a top destination for tourists and expatriates, which drives strong demand for rental properties. Investing in off-plan properties in high-demand locations can yield significant rental returns once the property is completed. Coastal areas like the Costa del Sol and Costa Blanca are particularly popular for holiday rentals, while cities like Madrid and Barcelona attract long-term tenants.
Legal Framework
The country has implemented strict regulations to safeguard buyers’ investments, including requirements that developers secure bank guarantees covering all payments made by buyers. These guarantees ensure that the buyer’s funds are protected if a developer fails to complete the project.
Moreover, all off-plan purchases in Spain must be notarised, adding a layer of security. Notaries and real estate lawyers in Spain play a crucial role in the property transaction process, ensuring that all legal requirements are met and that the buyer’s rights are protected. This legal oversight helps to build confidence among investors, reducing the risks associated with off-plan investments.
Off-Plan vs Resale Comparison
Most of the time, off-plan properties are priced below current market value and allow buyers to pay in instalments over the construction period. They also come with modern layouts, energy efficiency, and developer guarantees.
In comparison, Resale properties require full payment at the time of purchase and are bought in their existing condition. While they may offer immediate use, they might include high maintenance costs and potential renovation work.
| Feature | Off-Plan (New Build) | Resale (Existing Property) |
| Main Tax | 10% VAT (IVA) — Fixed nationwide. | 6% to 13% ITP — Varies by region |
| Secondary Tax | 0.5% – 1.5% Stamp Duty (AJD). | None. |
| Taxes & Fees | Approx. 13% – 14% of the purchase price. | Approx. 8% – 14% (Highly regional). |
| Payment Schedule | Instalments: Reservation + 30-40% during build + remaining amount on completion. | Immediate: 10% Deposit + 90% at completion (usually within 30–60 days). |
| Move-in Timeline | 12 – 24 months (Average construction time). | Immediate (Upon signing at Notary). |
| Appreciation | Potential for 10–15% growth before completion | Depends on market growth |
Popular Regions for Off-Plan Property Investment in Spain
As we mentioned earlier, Spain has several regions ideal for real estate investment. Some popular areas for off-plan properties are as follows:
Costa del Sol
If you’re looking to make a real estate investment in Spain, the Costa del Sol should be at the top of your list, especially if you are looking for an off-plan investment. Off-plan developments in this area cater to a wide range of buyers, from luxury villas in Marbella to modern apartments in Malaga. The region’s popularity with international buyers ensures strong demand and potential for price appreciation.
Malaga City deserves special mention as it is no longer a tourist destination. The city has established itself as a major technology and innovation centre, often referred to as the “Silicon Valley of the South.” This transformation has driven strong demand for premium off-plan projects in the city.
Balearic Islands
The Balearic Islands, including Mallorca, Ibiza, and Menorca, are known for their exclusivity and high-end properties. Off-plan investments in these islands offer the opportunity to own a piece of paradise, with properties often boasting stunning sea views and proximity to pristine beaches.
Madrid and Barcelona
Spain’s two largest cities offer a different kind of investment opportunity. Off-plan developments in Madrid and Barcelona focus on modern, sustainable living, often located in areas undergoing significant regeneration. These cities attract a diverse population, including professionals, students, and expatriates, ensuring a steady demand for both sales and rentals.
Emerging Areas
Beyond the well-known regions, several emerging areas in Spain are attracting investor attention. Cities like Valencia, Alicante, and Seville are seeing increased development, with off-plan projects offering modern amenities at competitive prices. These areas offer investors the opportunity to enter the market at an earlier stage, potentially reaping significant rewards as the regions develop.
Potential Risks and How to Mitigate Them
While off-plan investments in Spain offer many advantages, there are also risks to consider. Project delays, market fluctuations, and developers declaring bankruptcy are among the common challenges investors may face. However, there are several ways to mitigate the risks associated with this type of investment.
Researching Developers
It’s crucial to thoroughly vet developers before committing to an off-plan purchase. Look for developers with a strong track record of completing projects on time and to a high standard.
Understanding the Market
Investors should stay informed about the local property market and broader economic conditions. This knowledge will help in making informed decisions about where and when to invest.
Legal Advice
Engaging a qualified lawyer who specialises in Spanish real estate law is essential. They can help navigate the legal aspects of the transaction, ensure that contracts are in order, and provide advice on any potential risks.
Final Thoughts
Investing in off-plan properties in Spain can be a smart financial move, offering attractive prices, strong capital appreciation potential, and high rental yields. The country’s diverse locations and robust legal protections further enhance the appeal of off-plan investments. However, like any investment, it’s crucial to assess the risks and conduct thorough research before making a decision.
For those looking to enter Spain’s dynamic real estate market, off-plan properties offer a unique opportunity to capitalise on the country’s ongoing growth and development. Whether you’re seeking a holiday home, a rental property, or a long-term investment, Spain’s off-plan market has something to offer.
If you’re considering investing in Spanish real estate, explore the available off-plan opportunities today. Contact us today to check potential developments and take the first step toward securing a valuable asset in Spain’s thriving property market.
