New Developments Buying Guide – Costa del Sol & Malaga

Buying a new-build property on the Costa del Sol is one of the most attractive real estate decisions in Spain – both for buyers seeking a high quality of life and for investors who value legal security, energy efficiency, and stable international demand.

In this comprehensive guide, we explain step by step how to buy new-build projects in Málaga and on the Costa del Sol. The guide covers the market, the different types of new-build projects, the legal process, costs, financing, and the best regions to live in or invest in.

This guide is intended for both domestic and international buyers, as well as those considering buying an off-plan or turnkey property.

Why the Costa del Sol Remains One of Spain’s Most Attractive Property Markets

The Costa del Sol remains one of Spain’s most solid and attractive real estate destinations, underpinned by long-term fundamentals rather than short-term trends. Strong international demand, lifestyle appeal and continuous infrastructure investment continue to support both new developments in Malaga city and across the wider Costa del Sol.

Market depth and consistency

Property demand along the Costa del Sol is supported by a diverse buyer base, combining international purchasers, second-home buyers and long-term residents. This diversity has helped the market remain steady and adaptable across different economic cycles.

In simple words, Costa del Sol is a place people genuinely want to live, with reason!

An international and welcoming environment

The region continues to benefit from a steady flow of international buyers relocating for quality of life. Flexible working models, a mild climate, well-established international communities, excellent connectivity and a strong sense of safety make it easy for newcomers to settle in and feel at home.

A region that keeps improving

Malaga Province has seen sustained improvements in infrastructure, including transport connections, healthcare services and international education. These developments enhance day-to-day living while reinforcing the area’s long-term attractiveness as a place to live and invest.

A new generation of residential projects

Recent and upcoming developments reflect changing buyer expectations, with a focus on contemporary design, energy efficiency and well-planned communal spaces. This modern housing stock responds well to both end-users and rental markets.

A destination with year-round demand

Whether for holidays or longer stays, the Costa del Sol remains highly sought after, offering owners flexibility and strong rental interest throughout the year.

Why Buy a New Build (New Development) on the Costa del Sol

Buying a new development on the Costa del Sol is one of the most secure and attractive ways to acquire property in Malaga Province and Southern Spain, whether for lifestyle, relocation or investment purposes.

Modern design, energy efficiency, strong promoter / developer guarantees and strong international demand make new-build homes particularly appealing for both lifestyle buyers and investors.

This guide explains the buying process step by step, with a clear focus on the legal, financial and practical aspects specific to Malaga and the Costa del Sol.

1. New Development vs Resales Properties in Spain

When comparing new build properties with resale homes on the Costa del Sol, buyers often prioritise energy efficiency, legal guarantees and long-term cost predictability.

New developments offer several advantages over resale properties:

• Contemporary architecture and open-plan layouts designed around the way people live today, with features such as spacious terraces that extend the living area outdoors.

• High-energy efficiency and modern building standards, designed to meet Spain’s upcoming energy performance requirements.
  • From 2030, properties will need to achieve at least an E energy rating to be sold or rented, rising to a minimum D rating by 2033.
  • New developments are already built with these standards in mind, whereas many resale properties may require costly upgrades to remain compliant.

• Strong legal guarantees and statutory warranties covering the property for up to ten years after completion.

• Low maintenance and modern communal facilities

• Attractive long-term value in prime locations

Many buyers value the peace of mind that comes with purchasing a property built under current regulations and technical standards.

2. Types of New Builds on the Costa del Sol

On the Costa del Sol, new developments generally fall into the following categories:

• Apartments and penthouses, often in gated communities

• Townhouses, suitable for families and long-term living

• Villas, usually limited in number and highly sought after

New Builds can be:

• Off-plan (purchased before or during construction)

• Key-ready (newly completed and ready to move in)

Buyers can choose between off-plan properties and key-ready new developments depending on timeline, budget and investment strategy.

Advantages of Buying Off-Plan

• Early access and wider choice - Off-plan buyers often have access to the best selection of units, including preferred orientations, views, floor levels and layouts.
• Staggered payment structure - Payments are usually spread across the construction period, allowing buyers to plan finances over time rather than paying the full amount at once.
• Potential price appreciation - Purchasing at an early stage may allow buyers to benefit from price increases as construction progresses and demand grows.
• Personalisation options - off-plan buyers may be able to choose finishes or request upgrades

Advantages of Buying a Key-Ready Property

• Immediate use or rental, and faster buying process
• Possibility to visit the exact unit, assess views, light, finishes and surroundings before committing
• Easier mortgage planning - Financing is typically simpler, as the property is completed and valued at the time of purchase.

3. Legal Aspects when Buying a New Development in Spain

How Spanish Law Protects Buyers of New-Build Properties

Spain offers strong legal protection for buyers of new-build properties, with a framework specifically designed to safeguard purchasers throughout the construction and delivery process.

These protections include:

• Mandatory bank guarantees for all advance payments, ensuring that funds paid during construction are protected if the development is not completed.

• Regulated payment structures, requiring developers to receive stage payments through designated accounts and in accordance with legally defined milestones.

• Developer liability for construction defects, with statutory warranty periods covering finishing issues, habitability and structural elements after completion.

• Clear delivery and completion rules, defining handover conditions, deadlines and the obligations of the developer at the time of completion.

While this legal framework provides a high level of security, independent legal representation is strongly recommended. A qualified lawyer ensures that all guarantees are correctly issued, contracts are properly reviewed and the buyer’s interests are fully protected at every stage of the purchase.

Post-Delivery Warranties

Spanish law provides buyers of new-build properties with mandatory post-delivery warranties, offering long-term protection after completion:

• 1 year covering finishing defects, such as paintwork, fittings or minor workmanship issues.
• 3 years covering habitability defects, including issues affecting waterproofing, insulation, or building services.
• 10 years covering structural defects, protecting the building’s foundations, load-bearing elements and overall structural integrity.

Disse lovpligtige garantier gælder automatisk for nye byggeprojekter og er designet til at sikre kvalitet, sikkerhed og ro i sindet for købere.

Key Documentation Provided by the Promoter / Developer

When buying a new development, the promoter / developer provides a set of essential documents allowing the buyer to fully understand what is being purchased.

• Project Dossier (Sales Brochure) - Provides an overview of the development, including concept, location, renders, communal areas and indicative timelines.
• Building Specifications (Memoria de Calidades) - Defines the quality level, finishes and technical standards of the property, including flooring, kitchens, bathrooms, installations and energy systems.
  • Exact materials vs. equivalents: The specifications may list specific brands or refer to materials of “equal or similar quality”. This means the developer commits to a defined quality standard; any substitutions must be of equal or higher quality.
  • Personalisation: Depending on the construction stage, buyers may be offered personalisation options such as flooring, finishes or kitchen details. These must be agreed in writing and are subject to technical feasibility and deadlines.
• Floor Plans and Layouts - Show distribution, surface areas, terraces, orientation and annexes such as parking and storage.
• Site Plan - Shows the exact location of the unit within the development, communal areas and orientation.
• Price List and Payment Schedule - Details pricing, VAT tax applied, stage payments.
• Draft Reservation or Private Purchase Contract - Provided in advance for legal review, including plans, specifications, timelines and penalties.

4. The New Development Buying Process – Step by Step

The buying process for new developments in Spain follows a clearly regulated structure, designed to protect buyers from reservation to completion.

1. Selecting the Right Development - identify the right project based on location, budget, intended use and delivery timeframe.
2. Reservation Agreement - A reservation deposit (typically around €10,000, but it can vary depending on the project and the sales price of the new property) temporarily removes the property from the market. Reservations are often refundable during a short legal review period.
3. Private Purchase Contract - Once conditions are confirmed, and once the building license is obtained, the Contrato Privado de Compraventa is signed and the next payment is made (often reaching 20–30% of the purchase price).
   • Please note that developers in Spain are legally required to carry out due diligence checks on buyers, in line with anti-money laundering (AML) regulations. At this stage, the developer will ask the buyer to provide the required documentation in order to:
   • Verify the buyer’s identity (passport or ID)
   • Confirm tax residency
   • Determine the origin of funds used for the purchase
   • While this may involve providing documentation at an early stage, these checks are standard practice and apply to both residents and non-residents. They are designed to ensure transparency and compliance with Spanish and EU regulations.
4. Construction Phase & Stage Payments - For off-plan purchases, payments may be spread throughout construction. All advance payments must be protected by bank guarantees.
5. Completion & Title Deed - At completion, the final payment is made and the title deed is signed before a Notary. Keys are handed over and the property is registered in the buyer’s name.
   • Snagging Process - either before completion or right after the completion & delivery of the property, buyers are entitled to inspect the property and ensure it matches the agreed specifications. In this phase, the buyers (or their representative) are asked to complete a “Snagging List” (a written list of minor defects or unfinished details identified during the inspection). This list is then provided to the developer, who can then correct the highlighted issues

5. Timeframe & Key Milestones for New Developments

Understanding the legal and construction milestones involved in a new development purchase helps set realistic expectations and provides clarity throughout the process. Each stage plays an important role in determining when a property can be delivered and completed.

The typical sequence is as follows:

• Land & Planning - The project begins with land acquisition and urban planning approvals, confirming that the development complies with local planning regulations.
• Building License (Licencia de Obra) — Key Milestone. The granting of the building license is a crucial step. From this point onward, construction can legally begin, and delivery timelines become significantly more predictable. For this reason, developers usually do not sign the private purchase contract until the building license has been issued.
• Reservation - buyers can reserve a specific unit, temporarily removing it from the market while key terms are confirmed. The Reservation may happen before the building license is obtained
• Private Purchase Contract - The Contrato Privado de Compraventa is signed, setting out the price, payment schedule, specifications and delivery deadlines.
• Construction Phase (typically 12–24 months) - The property is built according to approved plans and specifications, with stage payments made during this period.
• End of Construction & First Occupation License (Licencia de Primera Ocupación – LPO) - Construction works are completed, and final technical inspections take place. The First Occupation License confirms that the property is fit for occupation and allows utilities to be fully connected.
• Completion & Key Handover - The final payment is made, the title deed is signed before a Notary, and the keys are handed over to the buyer
  • Snagging & Inspections - Buyers inspect the property, identify minor defects or finishing issues, and allow the developer time to correct them.

6. Costs and Taxes When Buying New Developments in Andalucía

Buyers should budget approximately 13–14% on top of the purchase price, including:

• VAT (IVA): 10%

• Stamp Duty (AJD): 1.2% (Andalucía)

• Notary and Land Registry fees (approximately 1%)

• Legal fees (typically 1% + VAT)

7. Financing a New Development in Spain

Spanish mortgages are available to both residents and non-residents purchasing new developments on the Costa del Sol, subject to lender criteria.

Typical conditions:

• Up to 70% loan-to-value for non-residents (conditions vary depending on the lender, country of residence, and financial profile)
• Up to 80% loan-to-value for residents

The mortgage is formalised at completion, as banks confirm the loan only after a property appraisal, which usually takes place once the apartment is built or close to completion.

An early mortgage assessment is strongly recommended, and our team can assist you throughout this process.

8. Rental and Investment Considerations for New Developments

Understanding local rental regulations is essential when purchasing a new development in Malaga city or on the Costa del Sol with an investment strategy in mind.

New developments on the Costa del Sol are particularly attractive for:

• Long-term rentals, supported by strong demand from residents, international professionals and families relocating to the Costa del Sol.
• Holiday rentals, although increasingly subject to local regulations and restrictions, especially in Malaga city and certain coastal municipalities such as Fuengirola. Buyers should always confirm licensing eligibility before purchasing with a short-term rental strategy in mind.
• Capital appreciation in prime areas, driven by limited new supply, modern housing standards and sustained international demand.

9. Why Work with a Specialist New Developments Agency on the Costa del Sol

Buying a new development involves multiple stages, legal requirements and professional parties. Working with a specialist new development agency in Malaga and the Costa del Sol ensures access to the full market and independent advice, together with clarity, coordination and peace of mind throughout the entire process.

At Christensen Estates, we offer:

• Access to all major new developments across Malaga Province and the Costa del Sol, allowing you to compare options objectively and efficiently.
• Independent guidance across multiple promoters / developers, helping you evaluate projects, locations and delivery timelines based on your personal goals rather than a single developer’s offering.
• Clear and transparent explanations of documentation, contracts, specifications and key milestones, ensuring you fully understand each step before moving forward
• End-to-end support, from the initial property selection and reservation through to completion, key handover and post-delivery matters.
• Introductions to trusted professionals, including independent lawyers, mortgage brokers and other specialists, carefully selected to suit your profile and requirements.
• Professional representation at no additional cost, as new developments are offered at the same price as buying directly from the developer.

Our role is to simplify the process, protect your interests and ensure a smooth and well-coordinated purchase experience.

10. Best Areas for New Developments on the Costa del Sol

The Costa del Sol offers a diverse range of locations for new developments, each appealing to different lifestyles, budgets and investment strategies. From urban regeneration areas to established coastal towns and emerging residential hubs, buyers can choose between beachfront living, golf communities, family-oriented neighbourhoods and quieter residential zones.

Below is an overview of some of the most relevant areas to consider when buying a new development in Malaga Province.

Malaga City

Malaga has become one of the most dynamic cities in Southern Europe, driven by cultural investment, technology growth and urban regeneration. New developments in Malaga are primarily found in expanding districts and revitalised neighbourhoods, offering modern living close to services, transport and the airport. The city is particularly attractive for professionals, long-term residents and investors focused on year-round demand.

The Western Costa del Sol

Located in the western part of Malaga Province, this section of the Costa del Sol is the most established and diverse area of the coast. It offers a broad selection of new developments across well-connected towns and residential communities, ranging from lively coastal centres to family-oriented neighbourhoods and prime luxury zones. Together, these areas combine accessibility, lifestyle quality and strong long-term value.

From Torremolinos to Fuengirola

This stretch of the Western Costa del Sol is one of the most accessible and well-connected areas of the coast. Torremolinos, Benalmádena and Fuengirola are all served by the Cercanías C-1 train line, providing direct and frequent connections to Malaga city centre and Malaga International Airport.

The train offers a fast, reliable alternative to driving, making these locations particularly attractive for year-round living, commuters, and buyers seeking easy airport access. Combined with beaches, established amenities and a wide range of modern residential developments, this area remains a strong choice for both lifestyle buyers and investors.

Torremolinos

Torremolinos has undergone a strong transformation in recent years, with new residential projects replacing older stock and improving the overall quality of housing. Its proximity to Malaga airport, direct train connections and long beachfront make it appealing for both permanent living and rental-focused buyers seeking accessible coastal locations.

Benalmádena

Benalmádena combines a well-established residential environment with ongoing new development activity. Known for its marina, international schools and family-friendly atmosphere, it offers modern apartment complexes and gated communities that appeal to buyers seeking a balance between lifestyle, convenience and long-term liveability.

Fuengirola

Fuengirola remains one of the most international towns on the coast, with consistent demand from Northern European buyers. New developments here typically focus on modern apartments near the beach or transport hubs, making the area ideal for buyers prioritising accessibility, amenities and strong rental fundamentals.

Mijas Costa

Mijas Costa refers to the coastal area of the municipality of Mijas and stretches between Fuengirola and Marbella. It includes well-known residential and beachside zones such as La Cala de Mijas, Calahonda and Riviera del Sol.

Mijas Costa is particularly popular for new residential projects on the Costa del Sol, offering modern developments close to the beach, golf courses and services, while still benefiting from good connections to Malaga city and Marbella. It is popular with families and long-term residents.

The Marbella Region - From Marbella to Nueva Andalucía

The Marbella region represents the most established and prestigious segment of the Costa del Sol’s new-build market. Developments here range from high-end apartments and penthouses to exclusive residential communities set within golf and natural surroundings. This area attracts buyers seeking premium quality, lifestyle amenities and long-term value in prime locations.

Marbella & the Golden Mile

Marbella remains a benchmark for luxury new developments. Of particular note is the Golden Mile, the exclusive stretch connecting Marbella town and Puerto Banús. This area is characterised by low-density, high-end residential projects, beachfront proximity and strong long-term value retention. New developments here typically offer premium finishes, security, privacy and resort-style amenities, appealing to international buyers seeking prestige and capital appreciation.

San Pedro de Alcántara

San Pedro offers a more residential and understated alternative to central Marbella. Modern developments close to the beach, combined with walkable neighbourhoods and proximity to Puerto Banús, make it especially attractive to families and buyers looking for quality living with a more relaxed atmosphere.

Benahavís

Located slightly inland, Benahavís is known for exclusive residential developments surrounded by golf courses and natural landscapes. It appeals to buyers seeking privacy, views and a refined residential environment while remaining close to Marbella.

Elviria

Elviria is a well-established coastal area east of Marbella, valued for its beaches, international schools and low-density residential developments. New projects here focus on modern living in a balanced, family-friendly setting.

Nueva Andalucía

Nueva Andalucía is an established residential zone just north of Puerto Banús, widely recognised for its golf courses and contemporary developments. It attracts buyers looking for modern properties in a central yet residential environment with strong long-term demand.

The Estepona Region - From Estepona to Manilva

The Estepona region is one of the most active areas for new developments on the Costa del Sol, offering a wide range of modern residential projects, including beachfront communities and golf-oriented developments. The area is known for its sense of space, quality construction and attractive price positioning, appealing to buyers seeking lifestyle, family living and long-term growth.

Estepona

Estepona has experienced significant transformation in recent years, supported by public investment and urban improvements, and has become one of the fastest-growing areas for new developments on the coast. New residential communities, golf resorts and beachfront developments have strengthened its position as a year-round town, attracting buyers looking for modern living, comfort and long-term value.

Casares Costa

Casares Costa offers a more tranquil coastal environment just west of Estepona, characterised by low-density new developments and proximity to golf courses. Modern projects here often feature sea views and spacious layouts, appealing to buyers seeking quality living in a quieter setting while remaining close to services.

Manilva

Manilva is one of the westernmost areas of the Costa del Sol and offers some of the most accessible entry points into the new-build market. Developments here typically provide modern homes with generous terraces and sea views at competitive price levels, making Manilva particularly attractive for buyers focused on value, space and long-term investment potential.

The Eastern Costa del Sol

Located on the eastern side of Malaga Province, this part of the Costa del Sol offers a quieter and more traditional environment compared to the western coast. New developments here are more limited in number but increasingly sought after, appealing to buyers who value natural surroundings, lower density living and modern homes within an authentic Andalusian setting.

Nerja

Nerja stands out for its dramatic coastline, protected natural surroundings and charming historic centre. New developments are relatively scarce, which adds to the area’s appeal for buyers seeking exclusivity, tranquillity and long-term value. It is particularly attractive to those prioritising scenic beauty and a more established, traditional atmosphere.

Torrox

Torrox is known for its mild climate and relaxed lifestyle. New residential projects here focus on modern apartments and low-density communities, often with sea views. The area appeals to buyers seeking a quieter coastal setting with good value and a slower pace of life.

Torre del Mar

Torre del Mar offers a more active, year-round environment, with a strong local community and a well-developed beachfront. New developments in the area typically provide modern housing close to services, making it attractive for permanent living and buyers looking for a practical coastal lifestyle.

Rincón de la Victoria

Located closest to Malaga city, Rincón de la Victoria combines coastal living with convenient access to the capital. New developments here appeal to buyers seeking modern homes in a residential environment with easy commuting options and a strong focus on long-term living.

11. Next Steps: How to Start Your New Development Purchase

If you are considering buying a new development on the Costa del Sol, the next step is to explore the available projects and speak with our specialist advisors. We will help you clarify options, understand timelines and move forward with confidence.

To get started, simply complete the Contact Us form on our website, and a member of our team will be in touch to provide personalised guidance and answer any questions you may have.

FAQ: Buying New Developments on the Costa del Sol

Is it safe to buy an off-plan new build in Spain?

Yes. Spain offers strong legal protection for buyers of new-build properties, including mandatory bank guarantees for advance payments and regulated stage payments. Independent legal advice is recommended.

What taxes apply when buying a new development in Andalucía?

Buyers should budget around 13–14% on top of the purchase price, including VAT (10%), Stamp Duty – AJD (1.2% in Andalucía), notary and land registry fees, and legal costs.

What is the First Occupation License (LPO)?

The First Occupation License (LPO) confirms that the property is legally fit for occupation and allows full connection of utilities. It is required before completion and key handover.

When is the title deed signed for a new build?

The title deed (escritura) is signed at completion before a Notary, once the final payment is made and all legal requirements are met.

Can non-residents get a mortgage for new developments in Spain?

Yes. Spanish banks offer mortgages to residents and non-residents, typically up to 70% loan-to-value for non-residents and up to 80% for residents, subject to lender criteria.

Can I rent out a new build property on the Costa del Sol?

New developments are well suited for long-term rentals. Holiday rentals may be subject to local regulations, especially in Málaga city and some coastal municipalities, so licensing eligibility should always be checked before purchase.