New Build vs Resale in the Costa Blanca: Pros and Cons

Deciding between buying a new-build property or a resale home in the Costa Blanca is one of the most common dilemmas for international buyers. Both options offer very different features in terms of timescales, upfront costs, maintenance, and personalisation. In this guide, we objectively analyse the pros and cons of each alternative, helping you make a well-informed decision.

The new-build option: modern living and efficiency

Buying a brand-new property is incredibly appealing for those who want to be the very first to live in their home and avoid the hassle of renovations. These properties stand out for their energy efficiency and contemporary design.

Advantages of new builds

• Personalisation and modern materials: Developers often allow you to choose finishes, layouts, or tiling before construction is completed.

• Lower initial maintenance: Everything is brand new, from the plumbing to the appliances, which significantly reduces unexpected costs during the first few years.

• Energy efficiency: They comply with current thermal and acoustic insulation regulations, helping to keep monthly utility bills down. In the area, electricity bills typically range between 60 and 120 euros per month.

Disadvantages of new builds

• Waiting times: If you buy off-plan, you will need to wait months or even years before you finally get the keys.

• Taxes: Buying a new build is subject to VAT, which increases the initial purchase costs. Generally, the total buying costs add approximately 10-13% on top of the property price to cover taxes, notary fees, and registration.

• Price per square metre: This is typically higher than for resale properties in the same area.

The resale option: established locations and immediate handover

Resale properties make up the largest share of the market in well-established coastal areas, offering a fantastic variety of locations and styles.

Advantages of resale properties

• Immediate handover: Once the deeds are signed before a notary, you can move in or start renting out the property straight away.

• Established locations: They are often located in city centres or right on the beachfront, where there is no remaining land for new developments. In Torrevieja, for example, where more than half of the residents are expats from over 100 nationalities, established areas offer a lively international atmosphere all year round.

• Lower transfer taxes: Instead of VAT, you pay Property Transfer Tax (ITP), though total buying costs still remain within the 10-13% range on top of the purchase price to cover all legal and notary procedures.

Disadvantages of resale properties

• Renovations and updates: It is highly likely you will need to invest in painting, updating bathrooms or kitchens, or upgrading the air conditioning systems.

• Lower energy efficiency: Older homes often lack modern insulation, which can increase heating and cooling costs in winter and summer.

• Community fees: Some older urbanisations have high community fees due to the maintenance of large communal areas. In general, community fees in the area range between 40 and 120 euros per month.

Maintenance budgets and living in the area

Whether you choose a brand-new home or a resale property, the ongoing maintenance of the home is an important factor to consider. The total fixed annual and monthly costs of running an average property come to around 200-300 euros per month, which includes community fees, pro-rated taxes, and basic utilities.

For instance, the Council Tax (IBI) typically ranges between 300 and 800 euros per year, while home insurance costs between 150 and 300 euros per year. To this, you must add standard utility bills, with water costing between 25 and 45 euros per month, and a fibre internet connection ranging between 25 and 35 euros per month, with mobile phone contracts available from 10 euros per line.

Day-to-day living in the Costa Blanca is also very affordable for international residents. A weekly food shop for two people costs between 80 and 120 euros. If you enjoy eating out, a lunch menu of the day averages 12 to 16 euros, a dinner for two costs between 40 and 60 euros, and a coffee is around 2 euros. Furthermore, public transport is highly economical, with a local bus ride costing just over 1 euro.

The buying process and professional support

The buying process requires completing several key administrative steps. To begin with, securing the property usually requires a reservation agreement with a standard deposit of between 3,000 and 6,000 euros. Following this, a preliminary sales contract is signed, where a 10% deposit of the purchase price is typically paid.

Any foreign buyer will also need to obtain a NIE (Foreigner Identification Number). This document can be processed directly in Spain, at the Spanish consulate in your home country, or via a power of attorney. The process involves filling out the EX-15 form and paying a fee under fee code 790, which costs about 10 euros.

For all legal aspects and the correct handling of paperwork, we at Embassy My Home are here to guide you. When necessary, we will introduce you directly to our partner legal firm to guarantee complete legal security. On the financial side, our team will help you navigate and compare the different mortgage offers on the market to find the option that best suits your needs.

With over 25 years of experience in the Costa Blanca and a multilingual team, we know every corner of Torrevieja and its surrounding areas. If you are unsure which type of property is right for you, or if you would like to know the true market value of a home, we offer a free valuation with a response within 48 hours.

If you would like us to look at your specific situation and help you find your dream home in the Costa Blanca, get in touch with us today via WhatsApp.