New Build Buyer's Guide, Updated April 2026
New developments on the Costa del Sol, the complete guide for 2026
Over 300 new projects currently under development. 8,000 homes expected to complete in 2025 alone. Searches for "new developments Costa del Sol" up 150% year on year. Here is everything you need to know before you buy.
300+
active developments
8,000
homes completing in 2025
7–10%
typical rental yields
The Costa del Sol new build market in 2026 is unlike anything the region has seen before. Over 300 developments are currently active across Marbella, Estepona, Benahavís, Mijas and the surrounding area, ranging from entry-level apartments in Estepona starting at €250,000 to ultra-luxury branded residences on Marbella's Golden Mile priced above €10M. Searches for new developments on the Costa del Sol have risen 150% year on year, reflecting the scale of international interest in this market.
But buying off-plan or new build on the Costa del Sol requires a different approach to buying resale. The timelines are longer, the risks are different, and the opportunities, particularly for buyers who move early, can be significant. This guide covers everything you need to know: why new builds are outperforming resale, where the best projects are, how the buying process works, what it costs, and what to watch out for.
Why new builds are outperforming resale on the Costa del Sol
The shift from resale to new build has been one of the defining trends of the post-pandemic Costa del Sol property market. Several structural factors are driving this:
Energy efficiency
Spain updated its energy regulations in 2024, making older properties significantly more expensive to run. New builds must meet current A or B energy ratings, with solar panels, aerothermal heating and high-grade insulation built in as standard. This translates directly into lower running costs and higher resale values.
10-year structural warranty
All new builds in Spain come with a mandatory 10-year structural guarantee (garantía decenal) that resale properties simply cannot offer. For international buyers, this peace of mind is increasingly important.
Resort-style amenities
Today's new build developments on the Costa del Sol have raised the bar dramatically. Co-working spaces, wellness centres, concierge services, rooftop pools and smart home technology are now standard in mid-market developments, features that resale properties at similar price points cannot match.
Off-plan pricing advantage
Buyers who commit early in the development cycle, often at the point of planning permission, can secure units at prices 15–25% below the completed market value. This built-in equity is one of the primary reasons experienced investors target off-plan over resale.
Flexible payment plans
Off-plan purchases typically require a deposit of 10% on reservation, staged payments of 20–30% during construction, and the balance on completion. This allows buyers to spread capital outlay over 18–36 months, a significant advantage over resale purchases that require full payment at completion.
New build vs resale, which is right for you?
New build is not right for every buyer. The key differences to understand:
| Factor | New build / off-plan | Resale |
|---|---|---|
| Timeline | 18–36 months to completion | Move in within weeks |
| Tax | 10% VAT (IVA) + 1.5% AJD | 7–10% transfer tax |
| Customisation | Often possible | What you see is what you get |
| Warranty | 10-year structural guarantee | None |
| Energy rating | A or B as standard | Often D–G |
| Price growth | Built-in from launch to completion | Market-dependent |
| Risk | Developer risk during build | Title/legal risk on resale |
| Amenities | Modern, resort-style | Variable |
Best areas for new developments on the Costa del Sol
Not all areas of the Costa del Sol offer the same new build opportunities. Here is where the activity is strongest and what each area offers:
Estepona, the new build capital of the Costa del Sol
Best value + fastest growthEstepona has more active new build projects than any other municipality on the Costa del Sol, driven by its combination of remaining land supply, growing international demand and prices that still represent meaningful value relative to Marbella. The New Golden Mile east of Estepona town is particularly active, a stretch of beachfront where multiple developments are under construction simultaneously. Prices start from €250,000 for well-located apartments. Price growth of 13.3% in 2025 was the fastest on the Costa del Sol.
Marbella, branded residences and ultra-prime new build
Prestige + capital preservationNew build supply in Marbella is constrained, the municipality is largely built out and planning permissions are difficult to obtain. What is coming to market is almost exclusively at the premium end: branded residences on the Golden Mile, resort-style developments in Marbella East and Sierra Blanca, and a small number of bespoke villa projects in established areas. Buyers here are paying for address and brand as much as the physical property.
Benahavís, exclusive gated communities
Privacy + top-end investmentBenahavís continues to see high-end new build activity in and around its prestigious golf communities. Los Flamingos, El Madroñal and the broader area around La Zagaleta attract developers building luxury villas on generous plots with panoramic views. These projects sell primarily through private networks, many are fully reserved before they are ever publicly announced. Price growth of 16.1% in 2025 reflects the extreme scarcity of developable land.
Mijas, the value play for new build investors
Entry-level investmentMijas and Mijas Costa offer some of the best value for new build investment on the Costa del Sol. Well-located developments near golf courses and the coast start from around €200,000 for one-bedroom apartments and deliver rental yields of 6–8%, among the strongest on the coast. The area benefits from being within easy reach of Málaga airport and has seen significant infrastructure improvement in recent years.
How buying off-plan on the Costa del Sol works
The off-plan buying process is straightforward once you understand the stages. Here is what to expect from reservation to completion:
Reservation
You pay a reservation deposit, typically €3,000 to €10,000, to secure your chosen unit. The developer takes the property off the market while legal due diligence is carried out. This is usually refundable if major legal issues are found.
Private purchase contract
Your lawyer reviews the developer's title, planning permissions, bank guarantees and build license. Once satisfied, you sign a private purchase contract and pay an initial deposit of typically 10% of the purchase price.
Stage payments during construction
Most off-plan contracts require additional payments during the build, typically 20–30% spread over the construction period. These are usually tied to construction milestones. All payments must be covered by a bank guarantee (aval bancario) from the developer's bank.
Completion
When the property receives its Licence of First Occupation (Licencia de Primera Ocupación), you pay the remaining balance at a notary and receive the keys. This is when the full costs, including 10% VAT on new builds, become payable.
Registration
Your lawyer registers the property in your name at the Land Registry (Registro de la Propiedad). The process typically takes 4–8 weeks after completion.
The real cost of buying a new build on the Costa del Sol
One of the most common mistakes international buyers make is underestimating the total cost of purchase. For a new build property in Andalusia, budget approximately 13–15% on top of the purchase price to cover all taxes and fees. Here is the full breakdown on a €500,000 new build:
| Cost | Rate | On €500K |
|---|---|---|
| VAT (IVA) | 10% | €50,000 |
| Stamp duty (AJD) | 1.2% in Andalusia | €6,000 |
| Notary fees | ~0.5% | ~€2,500 |
| Land registry | ~0.4% | ~€2,000 |
| Legal fees | ~1% | ~€5,000 |
| Mortgage arrangement (if applicable) | 1–2% | Variable |
| Total additional costs | ~13–14% | ~€65,500 |
Note: resale properties pay transfer tax (ITP) at 7% instead of VAT, making the total purchase costs slightly lower. New builds incur VAT at 10% regardless of price.
What to watch out for when buying off-plan
Most off-plan purchases on the Costa del Sol complete without issue, but there are specific risks that every buyer should understand before committing:
⚠ No bank guarantee
Every stage payment you make before completion must be covered by a bank guarantee (aval bancario). If the developer does not provide one, walk away. Without it, your money is at risk if the developer goes bankrupt during construction. Your lawyer should verify this before you sign anything.
⚠ Missing build license
Developers sometimes market and sell units before they have received their build license (licencia de obras). This is legal in Spain but carries risk, if the license is refused, the project cannot proceed. Your lawyer should confirm the status of all permits before you sign a private purchase contract.
⚠ Delivery delays
Construction delays are common in Spain. Most contracts allow developers 12–18 months of flexibility beyond the stated completion date without penalty. Build this into your planning, do not rely on a specific completion date for financing, relocation or rental income.
⚠ Specification changes
Developers reserve the right to make material changes to the specification during construction. Your contract should include protections against significant changes, particularly to finishes, layouts and communal facilities. Your lawyer should review these clauses carefully.
⚠ Community fees and running costs
New build developments in Spain typically have higher community fees than resale properties due to their amenities, pools, gyms, security, landscaping. Always request an estimate of annual community fees (gastos de comunidad) before purchasing, and factor them into your yield calculations.
The rise of branded residences on the Costa del Sol
One of the most significant trends in the Costa del Sol new build market is the arrival of internationally branded residential projects. Marbella and the Golden Triangle now host more branded residence projects than any other area in Spain, including developments bearing the names of Versace, Karl Lagerfeld, Dolce & Gabbana, Fendi and Lamborghini.
According to Knight Frank, buyers of branded residences typically pay a premium of 25–35% over comparable non-branded properties. In return they receive designer interiors, hotel-style amenities, concierge services and the reputational backing of a globally recognised brand. For investors, branded residences also tend to command premium rental rates and achieve higher occupancy than standard developments.
Projects currently under development or recently delivered include the Versace Villas in Nueva Andalucía (launched June 2025, completion 2027), the Karl Lagerfeld Villas on the Golden Mile (completion end 2026), and the Dolce & Gabbana residences also on the Golden Mile (build licence granted July 2025, completion 2028). These projects are selling to a global ultra-high-net-worth buyer base and represent a new tier of luxury that was not previously available on the Costa del Sol.
2026 new build market data, supply, prices and absorption
The headline number, 300+ active developments, only tells part of the story. Total visados (planning approvals) issued in Málaga province reached just under 12,400 new homes in 2024, the highest figure since 2008 but still well below the estimated 18,000 units of annual demand. The structural undersupply that has driven Costa del Sol prices up 9% in 2025 is forecast to persist until at least 2028, with Andalusian planning bodies, developer associations and Knight Frank all aligned on the same outlook.
Average new build asking prices currently sit at €4,180/m² across the Costa del Sol, against €3,400/m² for resale, a roughly 23% premium that reflects the gap in energy efficiency, finish quality and amenities. Within that, Estepona new build averages €3,950/m², Marbella €6,200/m², Benahavís €6,800/m² and Mijas €3,250/m². Off-plan units released at launch are typically priced 12–20% below their projected completion value, which is why early-phase buyers continue to capture the strongest returns.
Absorption rates are equally telling. The strongest projects in Estepona's New Golden Mile and around Los Flamingos in Benahavís are selling 60–80% of available units within the first six months of launch. Branded residences in Marbella have, in several cases, sold out within 90 days. By contrast, generic developments in less-established micro-locations can take 18–24 months to fully sell, a useful reminder that not all new build is created equal.
Buyer tips, how to evaluate a new development before you commit
The single biggest determinant of how an off-plan purchase performs is the developer behind it. Before signing a reservation contract on any new build, work through the following:
Check the developer's track record
Ask for at least three previously completed projects in the area, then visit them. Inspect the quality of the finish, talk to current owners and check whether the community has been handed over cleanly. Developers with a poor delivery history will usually have visible problems on prior schemes.
Verify the bank guarantee structure
Every euro you pay before completion should be covered by an aval bancario from a regulated Spanish bank. Ask for a sample of the guarantee wording before you reserve, and have your lawyer confirm it matches the actual document issued at contract signing.
Read the memoria de calidades carefully
The specification document (memoria de calidades) defines what you are actually buying, kitchen brand, sanitaryware, flooring, glazing, insulation, smart home wiring. Vague language ("high-quality finishes") is a red flag. Branded specifications (Bosch, Gaggenau, Porcelanosa) are far easier to enforce.
Confirm the orientation and view from the actual unit
Show flats and 3D renders are aspirational. Insist on a site visit with a plot plan to verify orientation, view corridors and proximity to road noise or future planned construction. Plot plans are public, your lawyer can check what is allowed on the neighbouring land.
Stress-test the running costs
Resort-style amenities are expensive to maintain. Ask for projected community fees, then add 25% as a buffer, first-year budgets are routinely under-set. For any development with a spa, multiple pools or 24/7 security, expect community fees of €250–€600 per month for an apartment.
Understand the snagging process
Reputable developers offer a structured snagging period (typically 30 days post-handover) followed by the 10-year structural warranty and a 3-year warranty on installations. Get the process in writing before completion, it dramatically reduces friction when issues arise.
Local insights for new build buyers in 2026
Construction inflation has stabilised. After two years of sharp materials and labour cost increases, build costs in Andalusia rose just 2.8% in 2025, close to general inflation. This has eased pressure on developer margins and reduced the risk of quality compromises during the build, but it has not translated into lower asking prices. Buyers expecting discounts because "costs have come down" will be disappointed.
Energy ratings are becoming a resale lever. Spain's updated energy performance regulations make A-rated new builds materially cheaper to run than older stock, typical annual energy bills are 60–70% lower. As resale buyers become more conscious of running costs, the price premium between A-rated and pre-2010 stock is widening. Buying a new build today is, in effect, a hedge against future energy pricing.
Short-term rental rules are evolving. Andalusia tightened tourist licence rules in 2024 and several Costa del Sol municipalities are considering further restrictions for 2026. Importantly, most new build developments are sold with a clear position on rental use defined in their community statutes, a far cleaner starting point than buying into an existing community where rules can be retroactively changed by majority vote.
Off-plan capital flow is shifting north of the AP-7. With beachfront land in central Marbella effectively exhausted, developer interest has moved inland, the slopes above Sierra Blanca, the foothills behind Benahavís and the corridor between Estepona and Casares. Buyers who can accept a 5–10 minute drive to the beach are accessing significantly larger plots, better views and prices 20–30% below comparable beachfront product.
How to find the right new development for you
With over 300 active developments across the Costa del Sol, finding the right project for your specific requirements, area, budget, completion timeline, property type, rental potential, is not straightforward. The best units in the best developments sell quickly, often before they are publicly announced. Many off-plan projects are pre-sold entirely through agent networks before they ever appear on Idealista or Rightmove.
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Frequently asked questions
Is buying off-plan on the Costa del Sol safe?↓
Yes, provided you work with a reputable developer, use an independent lawyer and ensure all stage payments are covered by a bank guarantee (aval bancario). The legal framework in Spain is well-established for off-plan purchases and the vast majority complete without issue.
How long does an off-plan purchase take?↓
It depends on the stage of construction when you buy. Early-phase off-plan purchases can take 18–36 months from reservation to completion. Properties already under construction may complete in 6–12 months.
Can I get a mortgage on an off-plan property in Spain?↓
Yes, but most Spanish banks will not release the mortgage until the property has its Licence of First Occupation. You typically need to finance stage payments during construction from your own funds and arrange the main mortgage at completion. Some international lenders specialise in this type of financing.
What is the difference between off-plan and new build?↓
Off-plan means buying before or during construction, before the property is complete. New build means buying a newly completed property that has never been lived in. Both attract VAT at 10% rather than the transfer tax that applies to resale properties.
Which areas have the most new developments on the Costa del Sol?↓
Estepona currently has the highest concentration of active new developments, followed by Marbella East, Mijas and Benahavís. Marbella's prime areas, the Golden Mile and Nueva Andalucía, have limited new supply due to land constraints, which is why projects there command a significant premium.
What rental yield can I expect from a new build on the Costa del Sol?↓
Short-term holiday rental yields on quality new build properties typically range from 6–10% gross depending on location, property type and management. Estepona and Mijas tend to offer the strongest yields relative to purchase price. Puerto Banús and the Golden Mile command higher absolute rents but also higher purchase prices. Always factor in community fees, management costs and licensing requirements when calculating net yield.
Sources: Pure Living Properties Market Report 2025, Panorama Properties Market Report 2026, Knight Frank Branded Residences Report 2025, Bromley Estates Marbella 2026, Spot Blue International Property 2026.
Related areas
Areas with the most active new developments.