The primary market in Spain – what to look out for when buying from a developer?

Is it worth choosing the primary market? Spain, due to its ever-growing popularity, offers more and more luxury properties directly from developers. Find out what to look for when buying such an apartment or house.

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Secondary market or primary market? Spain attracts wealthy investors who, looking for a profitable and safe investment, choose new construction. This solution brings many benefits, from higher standards to lower operating costs. If you want to buy a property in Spain from a developer, be sure to read this guide.

It is the primary market in Spain that offers the premium quality and modernity sought by demanding investors. Unlike in Poland, flats and houses from developers on the Iberian Peninsula are delivered in a turnkey condition – with finished walls, fitted bathrooms and air conditioning installed. This means that they are ready to move into almost immediately.

A particularly important aspect is transaction security, which is a priority in the case of luxury properties. The primary market in Spain offers several tools that protect wealthy investors at every stage of construction. These include:

• bank guarantees (aval bancario), which ensure a full refund if the developer fails to complete the construction,
• a 10-year developer's guarantee (seguro decenal) for structural elements of the building, such as foundations and load-bearing walls.

If you are looking for the highest investment potential, there is no better solution than the primary market. Spain is constantly gaining new luxury properties, which are the most sought-after properties on the rental market. As a result, you can count on high revenues and a steady influx of reliable, wealthy tenants who are looking for the highest standard.

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

Buying a new property in Spain is a transparent process involving clear and logical steps. How does it work in practice?

1. Find an interesting offer.
2. Sign a reservation agreement (contrato de reserva) and pay a deposit.
3. Complete formalities such as obtaining an N.I.E. number and opening a Spanish bank account.
4. Sign a developer agreement (contrato de compraventa) and pay the first instalment.
5. Signing the title deed at the notary's office (escritura).
6. Receiving the keys (entrega de llaves) and technical inspection of the property.

At each stage, you can rely on the support of an agency that verifies all entries in order to protect the client's interests.

The first instalment mentioned above is part of the transaction amount that the new owner pays to the developer. This is a normal procedure on the primary market. Each amount is transferred to a special bank account, thanks to which the risk of capital loss is zero. If the project is not completed, the instalments paid are refunded.

The basis is to check the reputation of the developer, which is assisted by a real estate agency operating on the Spanish market. The history and financial situation of a given company, as well as its previous projects, are of particular importance. An analysis of previous projects allows you to make sure that the developer cares about the quality of workmanship and complies with the terms of the contract.

It is equally important to verify the legal documentation. When purchasing a property on the primary market in Spain, you should check:

• the building permit,
• bank guarantees or insurance policies purchased by the developer, 
• the details of the development contract, including the price of the property, the payment schedule, the development plan for the common areas and the building materials used.

Why choose the primary market? Spain is a popular destination among wealthy professionals and digital nomads who are interested in long-term rentals of luxury properties. Such tenants are less likely to look for something for themselves on the secondary market – instead, they prefer new construction, mainly due to:

• lower utility bills (thanks to energy-efficient solutions),
• reliability of equipment and installations,
• modern design and high standards,
• access to luxury amenities and shared facilities, such as a gym, swimming pool or wellness area, for which they are willing to pay higher rent.

The primary market in Spain benefits not only wealthy tenants. The owner also benefits from long-term rentals in new buildings, and not only because of the possibility of setting a higher rent. Such a property involves minimal operating costs. In practice, this means that it does not require any renovations or investments for many years. In addition, all installations and equipment are covered by a warranty, so the owner does not have to pay for any repairs or replacements.

Are you interested in the primary market? Spain has different laws, and properties there may differ from those you are familiar with in Poland. In the premium segment, there is no room for compromise or risk, so the best solution is to work with an experienced agency. This primarily provides access to knowledge about the local market, thanks to which professionals can distinguish developers with an impeccable reputation from risky ones who are better avoided.

But that's not all, because the agency is very familiar with the formalities involved in the primary market in Spain. This enables it to protect its client at every stage – from negotiating terms and conditions, through the credit process, to finalising the transaction and signing the notarial deed.

Working with an agency is also a way to save the client's most valuable resource, namely their time. Professionals take care of all the bureaucracy and verification. This allows investors to focus on the more enjoyable aspects of buying property in Spain – choosing the perfect flat or furnishing their new home on the Iberian Peninsula.

Are you thinking about buying a property? Spain has some real gems on the primary market, which the Polish agency Elite World Estates will help you find. It is your partner, thanks to which you gain access to the best, often unavailable elsewhere, offers for the sale of luxury flats and villas. Guarantee yourself a safe and highly profitable investment by contacting the agency today!

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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.