Off plan market and new developments in Costa del Sol
Author: Eve Keerus-Jusupov, CEO of Merlis Homes SL.
I help you find your ideal second home or commercial property on the Costa del Sol.
There is a lot of construction happening in Spain. If you drive around the Costa del Sol area, you’ll see cranes and buildings under construction.
Who are the biggest real estate developers in the Costa del Sol? How to mitigate risks when choosing a new development? What are the main advantages of new development for resales real estate? Which regions are developing and where is it worth investing? Keep reading and you will get clear answers to all these questions
Buying new developments is an investment niche in itself
When you purchase a property in the early stages, (off plan) of a new development, you can be confident that prices will have risen by the time the building is finished and it goes back on the market for resale.
This is also a niche in real estate – buying apartments in the initial phase to sell them at a higher price once they’re completed. Or if you are more patient and wait 2-5 years, the profit margin will be even higher.
New development Medblue in Los Monteros
Keep in mind that the more affordable and well-located new developments are often sold out within weeks, even though they won’t be completed for a couple of years.
As a rule, prices tend to rise even during the construction process. The first price increase usually occurs after the building permit is obtained, the next one when the show apartment is completed, and sometimes there is a final price increase for the last remaining units. It depends on the demand for that particular property in the area. In some developments, prices and availability are strategically managed throughout the entire construction process.
The largest developers and their plans on the Costa del Sol
Metrovacesa
Tiara new development in Benahavís
Spanish real estate developer with over a hundred-year history and more than 120 development projects across Spain.
In the capital city of Málaga, the standout developments are Málaga Towers Vision and Málaga Towers Living, located on Avenida Molière, right by the beach with sea views. Moving down the coast, you’ll see the Calma development in Mijas, and in Los Monteros, there are Medblue, Medblue II, and Medblue III.
In Estepona, most of the developments are concentrated, with a total of six projects: Symphony Suites F1, Oceana Gardens I, Oceana Gardens II, Serenity Gardens, Serene Atalaya F2, and Serene Atalaya F3.
In Benahavís, there is Tiara, while Blue Marine and Blue View Heights are located in Manilva.
The developer is set to create over 1,000 new homes on the Costa del Sol between 2023 and 2025.
In 2023, the company’s revenue was 586.5 million euros, a 13% increase from the previous year. The net profit was 48.6 million euros, up 25.9% from the previous year.
The largest shareholders are Spain’s major banks – Banco Santander (49.36%) and BBVA (20.85%).
Metrovacesa was founded in 1918, was a publicly traded company from 1946 to 2013, and has been publicly traded again since 2018.
Neinor Homes
Evergreen new development in Mijas
The company was founded in 1988.
On the Costa del Sol, Neinor Homes has developed several large projects, some of which are completed or currently under development. Here are a few projects: Evergreen Homes in Mijas, Bayside Homes, Etherna Homes, Atica Homes, and Mesas Homes II in Estepona.
Neinor Homes plans to build more than 1500 new homes in Spain in the coming years, with some of them located in the Costa del Sol region.
The company’s revenue in 2023 was 629 million euros. Profit grew significantly, reaching 23.4 million euros, a 97% increase compared to the same period the previous year.
Neinor Homes has been a publicly traded company since March 16, 2017.
Aedas Homes
New development Soul Marbella
The company was founded in 2016.
Several projects are underway on the Costa del Sol: Soul Marbella in Marbella, Vanian Green Village, South Bay Las Mesas, and Vanian Valley in Estepona.
Aedas Homes plans to build more than 1,200 new homes in the Costa del Sol region in the coming years to meet the strong demand for high-quality residential properties.
The company’s revenue in 2023 was 1.15 billion euros, a 24.4% increase from the previous year. The net profit was 109 million euros, a 3.6% increase from the previous year.
Aedas Homes has been a publicly traded company since October 20, 2017.
Taylor Wimpey España
Almazara new development in Istán
Taylor Wimpey España is part of the UK’s leading real estate developer, Taylor Wimpey plc, which has over 100 years of history. The company has been operating in Spain since 1958.
Ongoing projects on the Costa del Sol include Solana Village and Horizon Golf at La Cala Golf Resort in Mijas, Altura 160 in Benahavís, Green Golf in Estepona, and Almazara Hills + Forest in Istán.
Taylor Wimpey España is part of Taylor Wimpey plc, whose shares are listed on the London Stock Exchange. The company’s revenue in 2023 was £3,5 billion. The net profit was £349 million.
Kronos Homes
Eden new development in Mijas
Kronos Homes is a real estate developer operating in Spain and Portugal, founded in 2015. Kronos Homes is part of the Kronos Investment Group.
Among the projects on the Costa del Sol, Kronos Homes has developed Eden in Las Lagunas de Mijas, La Finca in Sotogrande, The Edge and Oasis 325 in Estepona, and One80 Residences in Benalmádena.
The company plans to develop over 500 new homes in the Costa del Sol region, including in Estepona, Torremolinos, and Mijas.
Why buy a new development?
Purchasing a new development often offers several advantages compared to older properties.
1. New and modern. New developments typically feature modern designs and amenities that older buildings may lack. New constructions are often built with energy efficiency in mind, utilize smart technologies, and adhere to contemporary building standards and regulations. This can result in better energy efficiency, sound insulation, and overall comfort.
2. Less maintenance and repairs. New developments usually require less maintenance and fewer repairs, at least in the first few years after purchase. Everything is new and does not need fixing. Older buildings might require more repairs and updates, which can be costly.
3. Customization options. Some developers offer the opportunity to personalize your new home by choosing elements like flooring, kitchen cabinetry, or wall colors.
4. Warranty. New buildings usually come with a construction warranty that covers any defects that arise within a certain period after the purchase.
5. Modern amenities. New developments often include contemporary amenities, such as built-in home automation systems, energy-efficient appliances, and advanced security systems.
6. Financing options. Some developers offer favorable financing options for buyers of new developments, such as low-interest loans or installment plans.
7. Living environment. New development projects may provide additional benefits, such as new parks, sports facilities, or shops. Additionally, new developments may offer enhanced security, such as surveillance camera systems and on-site security. Common areas for work, relaxation, sports, and recreation, including indoor and outdoor pools, gyms, sports courts, playgrounds, and more, are often available as well.
What are the risks when buying a new development?
The sale of new developments often begins at the project stage. Unfortunately, some projects may never progress beyond this phase, or construction can take unexpectedly long.
When choosing a new development, consider the developer’s background, review the materials being offered, and visit showrooms if available. Larger developments often have model apartments built to give you an idea of what your future home will look like.
When purchasing a new development, pay attention to the following points:
- Developer’s bank guarantee: In case the project is delayed (due to financing difficulties, construction issues, supply, or labor problems). A bank guarantee protects you from financial losses if the project is not completed on time. Also, review the developer’s history and financial performance.
- Construction quality risks: Consider getting a technical inspection when taking possession of the new property. This is also a new service we offer—having specialists inspect the condition of the property.
- Necessary permits and certificates: Such as building permit, use permit, energy certificate, etc. A lawyer can help you verify these.
- Payment terms and schedule: Check when and under what conditions payments are made. Is the payment date-based or tied to construction progress?
- Location and surrounding infrastructure: Proximity to schools, hospitals, shops, and public transportation. What are the future developments—new roads, parks, residential, or commercial projects? Has the area been planned with street names, and when will the new address become valid in the postal system?
- Promised amenities: Verify when the amenities, such as pools, gyms, playgrounds, gardens, and parking areas, will be completed.
- Warranty length and coverage: Investigate how much the warranty covers construction defects and how long it is valid. We saw a one-year-old apartment building where the paint had peeled off. The seller mentioned that the builder forgot that there’s a lot of sun on the Costa del Sol and used the wrong paint. Typically, construction work has a 1-2 year warranty, while structural warranties last for 10 years.
Developing and growing areas on the Costa del Sol
The real estate market in Costa del Sol remains active and attractive, with demand exceeding supply. Interest from foreign buyers is still high, especially in areas like Málaga and Marbella, but the Estepona region is also on the rise.
Estepona is developing rapidly
The Estepona promenade is over 15 kilometers long, and the final section of the new promenade was opened in 2023
Estepona’s mayor is José María García Urbano. He has been in office since 2011 and has overseen numerous significant projects and reforms that have transformed Estepona into one of the most attractive places to live on the Costa del Sol. Under his leadership, the quality of the city’s infrastructure and public services has significantly improved.
The city administration has prioritized speeding up the processing of building permits and other necessary documents to promote development and economic growth. This includes the rapid review of construction projects and the issuance of permits, helping developers to bring their projects to fruition more quickly.
As of 2024, there are over 50 new developments currently underway in Estepona.
Marbella remains at the forefront
Marbella’s new detailed development plan received preliminary approval in January 2024. Final approval of the plan is expected in 2025.
The new detailed development plan will reclassify approximately 12 million square meters of land, allowing for the development of new residential areas, commercial spaces, and infrastructure.
This new detailed development plan is expected to further invigorate the real estate market. The creation of new business districts and industrial parks will generate more jobs.
The new infrastructure aims to improve traffic flow, with plans to reorganize traffic in Marbella’s city center as well.
As a result, Marbella is expanding inland, and while property prices a few kilometers away from the sea are currently (2024) more affordable and the lifestyle quieter, this is expected to change in the coming years.
Las Lagunas in Mijas
The largest park in Costa del Sol
Las Lagunas is an area you should keep an eye on. The Mijas City Council is investing €32.8 million in the construction of the largest park on the Costa del Sol (350,000 m²).
The park is expected to be completed by the end of 2025, along with several new developments in the same area.
The park will feature a lake, a skate park, 5,000 m² of children’s playgrounds, and 2,000 m² dedicated to a dog park. A running track and a cycling path will run around the perimeter, and there will be an open-air amphitheater for concerts. Additionally, a new health center will be built in the area.
Several new developments are being completed in Las Lagunas, offering 1-, 2-, and 3-bedroom apartments. These developments include pools, green areas, a gym and sauna, children’s playgrounds, private parking, and storage spaces.
Casares – an emerging area on the Costa del Sol
Casares, located 90 km from Málaga Airport, is an area that is growing and developing. The Hilton chain is also contributing to the area’s development.
A new luxury hotel, Conrad Hotels & Resorts, part of the Hilton hotel group, is planned to open in the third quarter of 2025, according to recent information. Hilton’s entry into the area will boost tourism and positively impact the real estate market in Casares.
Currently (2024), there are over 10 new developments in Casares, and prices in the area are still relatively affordable.
Luxury Real Estate
Particularly in the Marbella area, there is a distinct class of luxury real estate developed in collaboration with world-renowned names and brands.
Karl Lagerfeld Villas in Marbella
- Fendi Casa – Epic Marbella. When Fendi is involved in a real estate project, you can expect interiors that feature high-quality materials such as fine wood, marble, and exclusive fabrics, emphasizing luxury and functionality.
- Karl Lagerfeld Villas. Karl Lagerfeld, known as the head designer of Chanel and the founder of his own brand, represents a refined and modern style, which can be seen in real estate through minimalist design, black-and-white contrasts, and elegant, clean lines.
- Dolce & Gabbana. Real estate projects associated with Dolce & Gabbana showcase rich interiors, bold colors, intricate patterns, and luxurious textiles, offering living spaces that are both timeless and expressive.
- A Swiss developer, Riviesta AG, is set to launch a new development, The Sky Marbella, in 2026, featuring 16 luxury villas and 50 apartments with breathtaking views of the Mediterranean.
If you want information about new developments, including those that are still in the planning stages, please fill out the form below, and you’ll receive a response faster than you can imagine.
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