Comparison of buying property from a developer and on the secondary market in Spain – pros and cons

If you want to buy property on the Iberian Peninsula, you need to decide whether you prefer the secondary market or the primary market. Spain offers thousands of apartments and houses, so it is worth considering all the options.

More and more people are deciding to buy property on the Iberian Peninsula. As a result, developers in Spain are offering many exclusive investments in prestigious locations, suitable for short-term rentals, as well as for work or retirement. If you are considering buying a property, learn about the differences between the primary and secondary markets in Spain and find out which one is the best choice for you.

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Why consider the primary market? Spain is renowned for its high standards of new properties, especially in the premium segment. These types of apartments and houses guarantee modern technological solutions that improve both the comfort of use and lower operating costs. With the primary market, you know exactly what you are buying.

This is influenced, among other things, by the warranty on new flats in Spain, which minimises the risk of hidden defects. As standard, it is:
 

• 1 year for finishing defects,
• 3 years for defects that affect the use of the flat (related to structural elements and installations),
• 10 years for structural defects.
   

Thanks to the warranty provided for new flats, you do not have to worry about repairs yourself. Under this warranty, developers in Spain are obliged to remedy any defects.

New flats in Spain boast numerous advantages. These include, above all, high energy efficiency, the possibility of phased financing of the property and exclusive amenities that are not available in the secondary market.

High energy efficiency – mandatory confirmation with class A or B certificates – significantly reduces monthly bills. Developers in Spain use the latest technologies, including energy-saving systems. In addition, new buildings usually have better thermal insulation, which means that operating costs are lower than in older houses.

Another important factor is the possibility of phased financing of the property, which is offered when purchasing a flat from a developer in Spain. In practice, this means a flexible payment schedule – payments are spread over the entire construction period, which can sometimes last up to several months. This allows you to easily organise your finances and apply for a mortgage in Spain with peace of mind.

Another huge advantage is the exclusive amenities provided by modern residential complexes in prestigious locations. Investors who decide to buy an apartment from a developer in Spain can count on extensive, luxurious infrastructure. The list of popular amenities includes:

• private beach club,
• golf course,
• swimming pool,
• gym,
• spa,
• concierge service,
• and fenced green areas.

The advantages of new homes do not mean that you should immediately give up on the secondary market in Spain. Such properties have a unique character and architectural charm, typical of the Mediterranean region. These include traditional villas, historic apartments and restored fincas, or country estates. What is more, they vary in style and can attract buyers with their excellent location.

Speaking of which, old houses in Spain are often located in exclusive neighbourhoods which, due to limited land availability, are often inaccessible to new developments. These are areas with developed infrastructure and easy access to various amenities, such as schools, medical facilities and public transport.

When deciding between the secondary and primary markets in Spain, it is important to consider not only the location and amenities, but also the financial and legal aspects. The most important of these are the cost and the entire purchase process.

In the case of properties from a developer, the base price is higher, but there are no other taxes when buying a new flat in Spain, apart from VAT, which is 10%. Keep in mind that the primary market involves a longer waiting time for completion of construction, but offers greater comfort and lower operating costs.

On the other hand, if you decide to buy a property on the secondary market, you can expect a lower starting price. However, you must bear in mind that you will have to add transfer tax (in this case, VAT is not payable), the amount of which varies depending on the region. In addition, the secondary market, unlike the primary market, allows for faster completion of transactions.

Other aspects are also worth considering, such as:
 

• security – as properties are sold directly by the developer, the primary market involves minimal risk,
• compliance with standards – in the case of the secondary market, it is necessary to thoroughly check the technical condition of the building,
• hidden defects – a warranty for a new flat in Spain eliminates this risk, while in the secondary market it can be high,
• verification of legal status – the secondary market involves more formalities, such as checking the entry in the land and mortgage register.
   

Read also: Buying an apartment in Spain for rent. What do you need to know?

So what should you choose – old or new flats in Spain? Both the secondary and primary markets have their advantages. The former is a good option for those looking for unique properties at a lower starting price and located in areas with well-developed infrastructure.

On the other hand, the primary market in Spain is a good choice for investors who value hassle-free solutions and modern amenities. It is also a great option if you care about transaction security and property value growth.

Knowing the differences between the primary and secondary markets in Spain, you can decide what kind of property you want to buy on the Iberian Peninsula. If you are interested in premium flats and houses, check out the offer of Elite World Estates. You will find luxury apartments and villas on the Costa Blanca and Costa del Sol.

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Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. 
We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.