Cranes are a common sight on the busiest Spanish Costas at the moment, thanks to a surge in new developments. Here are some key considerations when buying an off-plan or key-ready property, with some dazzling examples in the Costa Blanca and Costa del Sol!

You get what you pay for! Compared to resale, a brand-new property might appear expensive, whether it’s off-plan (meaning you buy it as a plot or mid-way through construction), or key-ready (construction is completed but you are the first registered owner). But new-build comes with a host of tangible benefits. Buying off-plan gives you the option to custom design your home, add extras and choose your finishes.

The build quality, insulation materials and electrical installations will be more up-to-date than older properties, making them not only more contemporary in style, but also more efficient to run. By law, your property should come with a 10-year guarantee against structural defects, while fixtures and fittings typically come with a two-year guarantee. The developer will likely offer you a choice of new furniture packages, which you might be able to negotiate into the price.

Meanwhile, newer developments often have better and more modern communal facilities. All of this makes them sought-after holiday lets that command higher rents than comparable resale properties.

Early phases offer best capital appreciation potential. Purchasing an off-plan contract before there is a show home on site or ground is broken should deliver you the best chance of seeing your property rise in value, even before it is completed. Once a show home is constructed on a new project, units start to sell quickly and prices tend to increase. Buying early on also means you have the best choice of unit, so for example you can pick a south-facing, ground-floor or corner location.

In a buoyant market, buy sensibly and you should see capital appreciation whichever phase you buy in – when you sign a contract you’re fixing a price based on current values, which should hopefully have risen by the time the property is completed 12 or 18 months later.

Be fussy and explore your options. Look at and compare a range of show-homes and new projects in your chosen area, and for each enquire about the track record of the developer or builder. When you find something you really like, ask to visit other local projects completed by the same builder.

Before committing to a reservation contract, request a meeting with the builder. Chat about your chosen property design and any extras you want and run through costs and payment schedules, as well as delivery expectations – you should feel reassured by what they say and if you’re not, don’t be scared to walk away.

Water-tight contracts and legal protection are a must! Appoint a bi-lingual independent lawyer to safeguard your interests throughout the transaction. And don’t sign any contracts without their approval. What should you lawyer be checking? They’ll ensure your developer provides a bank guarantee for every payment you make during the build process – so if the developer goes bust, your money is protected.

Even before that, they should check the credibility of the developer, do a company search for them and check their accounts. Focusing on the land where the project will be built, they should request a copy of the planning permission and deeds for the land.

Thinking of getting finance? Spanish banks are offering some very favourable deals at the moment, both to residents and non-resident foreigners, but as a rule they won’t release the mortgage funds for an off-plan purchase until the property is completed. This is because until then an accurate valuation is not possible.

However, you can apply for a mortgage in principle a few months in advance, just be prepared to re-new your application if your circumstances change or completion is delayed. Meanwhile, be ready to cover the initial deposit and any stage payments with your own cash.