Foreigners spend 76.4% more on new homes compared to second-hand homes when purchasing properties in Spain. Foreigners purchasing new homes in Spain pay an average of €299,053, while the average price for second-hand/resale properties is €169,573.
In my experience since the rebound of the market around 2014-16, most new agencies selling to foreigners on Costa del Sol come into the market focusing on new developments and off-plan. Why? Higher purchasing power buyers, full commission, decent marketing materials, no need for agent collabs and no need for listings. The dilemma however is the amount needing to be spent on lead generation, and the sophistication of the lead follow-up is not for the faint-hearted.
Where new development-centric agencies differ from agencies specialising in resales is 100% of their sales are self-generated/direct. Resale agencies tend to be listing agencies, whereas off-plan agencies tend to be buyer agents. Two completely different sales focuses: one is all about getting the listings, local awareness, and collaborations with other agencies as most of their sales are in collaboration with other agencies; while off-plan agencies are all about lead follow-up and relationships with developers.
Another difference is that in the super prime sector most are listing agencies because they have buyers at those levels. In the super prime new usually means reformed (Solvilla) or individual villas being built. That of course is where hashtag#brandedresidences come in, with big projects such as Epic, D&G from SBE, Idiliq launched the project with the longest name in history (Wyndham Grand La Cala Golf Residences), and before Dar Global decided to chuck 50+ 5m euro villas into the market with their Lamborghini (inspired) project in speed-bump capital of the world Benahavis.
What´s the split? 79% of properties sold in Spain are resales and 21% are new builds (Land Registry Q1 2024).
Would imagine that on the Costa del Sol new builds account for more than 21%.
