The Spanish coastal property boom continues and, as new developments are released onto the market, there is the usual rush to reserve prime apartments - those with the better views, extra space, corner apartments, the penthouses, etc. Increasing numbers of individuals are buying new development Spanish property as an alternative investment vehicle to stocks and shares. In buying a new Spanish property, you are investing into an 'off-plan' concept and therefore benefit from lower starting prices, which are usually 30% below market value. The reason properties are offered initially at such low prices is to attract individuals who are in no hurry to take occupation, but realise the significant savings of early purchasing. These early purchasers provide confidence in the project and financial security for the bank or the developer who provides the financing. Construction starts with or without these early sales but, of course, quick sales at this stage enable the developer to make an increase in prices when constructions begins. Prices generally go up in percentage increments during construction. First, when foundations are laid, secondly, when brick-work begins and, lastly, during the finishing stages. |
