If we take ourselves back to the Spanish property boom, a time when most economies seemed to be thriving and many people had access to funds, often beyond their means, off-plan property sales in Spain were thriving. Banks were lending hand over fist and some buyers were purchasing multiple properties with the hope of ‘flipping’ them before there needed to pay the last instalments or get mortgages.
And then it happened…
The now famous sub-prime mortgage crisis hit almost overnight seeing some of the top US investment banks like Lehman Brothers file for bankruptcy. This had a major knock on effect through the entire financial infrastructure around the world and eventually meant that many Spanish property developers were left with properties that had been purchased not being able to be completed as the banks were unable to finance the final payments. With the banks in crisis themselves and unable to bail out the developers, many went bust leaving half-finished developments.
It is very different now
Financing of property is now different. Banks and finance houses are more careful when it comes to lending money. The developers themselves are wiser and the whole way of selling off-plan property has altered. The confidence in the property market in Spain has returned and the cranes are once again visible across the skyline, and of course the prices are much lower than they ever were.
We are seeing many of those unfinished developments that were sitting idle for years being purchased by a new breed of developer and are now well on their way to being completed. Alongside these many well-known international developers have purchased or taken over new plots and are building new homes in places like Benahavis, San Pedro de Alcantara and Estepona.
In fact many of the apartments in places like Marques de Atalaya in Benahavis and Los Arqueros Beach in San Pedro de Alcantara pretty much sold out off-plan.
Where are the off-plan developments?
Marbella is seeing less new builds mainly due to licensing issues for new properties. Estepona and Benahavis are where you will find many of these new off-plan projects, especially along the new Golden Mile.
We have access to the majority of these off-plan developments in Estepona as well as those that have been completed but still have a few units left.
See our new developments section for more information.