Buying property off plan is a new option which the real estate investor in Spain is considering. Currently, it is difficult to take a chance about hardly anything, given the state of emergency we are going through. However, we can affirm that the purchase of real estate from architectural plans has re-emerged again in our country. This purchase modality had fallen into disuse in Spain, but facts and figures show a re-emergence in the previous year. According to Instituto Nacional de Estadística (INE), in 2019 in Spain, 93.000 new property was purchased and most corresponded to housing projects on plans. One of the main reasons for the re-emergence of the purchase of real estate from architectural plans in Spain is the shortage of new housing in the great cities.
In Madrid or Barcelona, the fact of buying new property has turned out to be almost an odyssey due to the difficulty of finding it, especiallly in the central districts. This is why investors have opted for purchasing property which has still not been constructed. The purchase of housing projects on plans was nearly at a stop, in our country, until a few years ago. However, the reactivation of the real estate market has led to a great boost in this kind of product which has, again, become very much in demand in Spain. Obviously, the Covid 19 health crisis has caused moments of uncertainty in every sphere of activity in our lives. In addition, we do not know how this situation will affect the real estate system. Nevertheless, nowadays, it is an unquestionable fact that the purchase of real estate from architectural plans has become a reality in Spain. Facts and figures show that in the last SIMA (Salón Inmobiliario de Madrid), 95% of the commercialised property sold was still not constructed.
THE BUYER PROFILE OF PROPERTY OFF PLAN
The buyer profile of property off plan complies with the characteristics of people who have no urge to have at their disposal the property which they wish to purchase. This is probably the most important characteristic, because if the property must be lived in immediately, then the option of purchasing a housing project on plan is the first one to be ruled out. On the other hand, this kind of product allows some relaxations in the payment. This is because real estate from architectural plans gives the buyer the period of time the construction takes to complete the payment. In addition, we must take into account that the price of houses which have not been built is lower than finished ones, usually between 10% and 15% less. Therefore, if we add the progressivity in the payment to the reduction in the price of this type of property, then we can say that there are economic advantages. These facts play, for the buyer, a decisive role in opting for this kind of operation. Apart from this issue, the purchase of housing projects on plans allow greater customization of the house, which is an advantage. In a finished house this option may not be possible or may be very expensive.
This matter does not go unnoticed. Therefore, the buyer of property off plan is fully aware that the materials are usually top quality and that the property also has maximum energy efficiency. Sometimes, the buyer of real estate from architectural plans seeks more exclusive complements such as a spa, a gymnasium or a recreational area for children. All of this is usually very difficult to find in a constructed house. Therefore, we can state that even though property off plan has the inconveniences of waiting periods, it also has many advantages that captivate the buyers.