Buying Off-Plan Property in Marbella: What to Know Before You Sign
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Off-plan is one of the most popular ways of buying property in Marbella - and one of the easiest ways to get caught out. Here is what you need to know before signing anything.
Why off-plan appeals to buyers
Buying property in Marbella off-plan - before it is built - has genuine appeal. You often secure at a lower price than the completed property will sell for. You get to choose your finishes and sometimes your floor plan. You have time to arrange financing without pressure. And when a reputable developer delivers on time and to specification, the result can be exceptional.
The risks are real though, and they are different from the risks of buying a resale property.
The developer question
The first and most important question in any off-plan purchase is: who is the developer? A track record of completed projects, delivered on time, to specification, is the most important piece of due diligence you can do. Ask your agent and your lawyer to help you verify this. Check completed developments. Visit them if possible. Talk to people who bought from this developer before.
In the Marbella area there are excellent developers with strong reputations. There are also developers with less consistent track records. Knowing the difference matters enormously.
Bank guarantees for your deposits
Spanish law requires that developers protect stage payments made by buyers with bank guarantees or insurance policies. This means that if the developer goes into administration before completing your property, you can recover your deposits. Verify that your lawyer checks the guarantee is in place and is properly structured. Do not pay stage payments without this protection confirmed.
The building licence
Before a developer can legally build, they must have a building licence from the local authority. Some developers market properties before this is in place. Be very cautious about paying deposits on projects where the licence has not been granted - it introduces a risk that the project may not go ahead at all, or may change significantly.
Completion timelines and what delays mean for you
Off-plan projects frequently run over schedule. Build in contingency - in your own plans, in any rental property arrangements you are making in the meantime, and in your mortgage offer if you are using financing. Your purchase contract should specify a completion date and what happens if it is missed. Your lawyer should explain the remedies available to you if completion is delayed significantly.
Snagging
When a new property is ready, you (or a professional snagger) inspect it and produce a snagging list - a list of defects and incomplete items to be resolved before or shortly after you take possession. Snagging is normal and expected. Do not skip it, and do not take possession of a property with outstanding issues until the developer has committed in writing to addressing them.
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Check if it's still free - PlanMarbella.comFrequently Asked Questions
Is buying off-plan in Marbella safe?
It can be, with the right developer and proper legal protection. The key protections are: a reputable developer with a verifiable track record, properly structured bank guarantees for all stage payments, a building licence confirmed before you pay deposits, and an independent lawyer reviewing every document before you sign.
What is the typical payment schedule for off-plan property in Marbella?
Common structures involve a reservation deposit (3-5%), followed by stage payments during construction (often 20-30% across several payments), with the balance (50-60%+) on completion. The exact schedule varies by developer and project. Each payment should be covered by a bank guarantee.
Can I get a mortgage for an off-plan property in Marbella?
Yes, but the mortgage offer is usually only formalised when the property is complete and has its first occupation certificate. You can get a pre-approval or agreement in principle, but lenders want the completed property to value before finalising the loan. This means financing arrangements need to be flexible enough to accommodate the completion timeline.