In recent years, Estepona has seen an incredible revitalization. Newly repaired and repaved streets wind through the city. Flowers line these streets, hanging from pots attached to walls and homes and garden installations pop up in unexpected places. Sculptures and poems on ceramic plaques mean that there is no shortage of things to see while strolling or biking around this beautiful city. Immaculately maintained beaches entice beach-goers to relax and take a dip in the sparkling Mediterranean.
This newly revitalized area has been dubbed The New Golden Mile and is quickly becoming equal with its close relative, Marbella and other Andalucian areas. It now boasts a brand new hospital as well as an “Olympic” athletics stadium. Not to mention the wealth of golf courses that provide endless opportunities for days of sun and golf nearly year round.
Despite this resurgence in beauty and entertainment, property prices in Estepona remain lower than anywhere else on the Costa del Sol. At €230,000 for a new luxury 2 bedroom apartment with incredible terraces, an open concept, floor-to-ceiling windows bringing in panoramic sea views, properties here are at least €100,000 less than other areas on the Costa del Sol. In addition to lower purchase prices, the appeal of the area means that if you choose to rent your property, the average price for the apartment described above runs between €1,300 – €1,800 per week and can be rented out nearly year-round.
People are investing in off-plan properties in Estepona for a variety of purposes. Properties can serve as a primary residence or a second vacation home. They can be purchased specifically to be rented out to the scores of holiday visitors that pour into the area each year. They can also be purchased with the intent of reselling as the market continues to rise.
No matter your goals with your property, one of the best ways to secure an investment property in Estepona is to invest in off-plan developments. And the best time to do it is right now.
What is an off-plan development?
An off-plan development is a development that is beginning construction or is in the mid-construction stage. Many banks will not approve financing on a new build development until the developers have sold 20-30% of the units. This means that developers have a high incentive to sell the properties.
This high level of incentive lead to a host of benefits for the investors.
Benefits of off-plan investments
Net price and capital growth
If you’re buying off-plan, most first phase units will be sold to investors at a net price. Plus, you’ll gain the benefits of capital growth from the time of purchase until the property is finished.
Consider a property that is being built today but won’t be available for public purchase until 2021. If you purchase it today, you’ll have two years of capital growth before you live in it, rent it, or resell it.
As construction continues, developers increase prices by 35-40%, so the earlier that you decide to invest, the better deal you’ll get, and the more you’ll make on the property.
You can “see” the property before it’s finished
In years past, buying off-plan meant having an incredible imagination that allowed you to see the structure and frame of the property and be able to picture what it could be. That makes decisions difficult if you’re not able to imagine the final result.
With today’s technology, computer-generated building designs allow you to see the finished property almost as clearly as if they were actual photographs. This means that you really will know what the property will look like, and there will be fewer surprises than if you and the developer had different designs in mind.
When you buy an existing property, you’re getting what has already been built. Buying off-plan, however, means that you can tailor the property’s design to your own tastes as it is being constructed and finished.
Many developers also offer options to suit every budget and some can even organise furnishings so the property is ready to use the day that it is completed.
Simple buying process and financial protection
Developers need investors to buy their properties in order to complete or even begin construction. Therefore they usually want the buying process to go as smoothly as you do. Because it’s new construction, there generally won’t be many issues to address, as is often the case with an already constructed older home. There’s also the added bonus of dealing with professionals rather than homeowners.
Another bonus is that under Spanish law, no off-plan property can be sold without a 100% money safe bank guarantee. This means that you are guaranteed a secure payment structure where your investment is protected by the bank. Insurance policies and airtight contracts add safety and security to purchasing off-plan.
So, if you’re ready to begin building your investment portfolio on the Costa del Sol, choosing off-plan investments in Estepona can have endless rewards. And the best time to start is right now!