Buying an off-plan apartment in Madrid today requires careful attention to project details, including final plans and relevant documentation. Although it offers economic advantages and flexibility in design, it also presents certain risks and challenges.

Buying an off-plan apartment in Madrid

Legal guarantees and protection

One of the main concerns for buyers of off-plan apartments is security and legal protection.

Fortunately, in Spain there are laws that protect the rights of buyers and provide guarantees to ensure that the property meets quality and habitability standards.

The Building Law establishes a legal framework that guarantees the quality of construction and protects the rights of buyers.

This law establishes a warranty period of up to ten years, during which buyers can claim for any structural or functional defects in the home, such as defects in the foundation or supports, paintwork, flooring or glass. In addition, a buyer has three years in which to claim for damages that do not meet the requirements of habitability.

Buyers also have the right to request detailed information about the construction project, including final plans, technical documentation and quality reports. This information allows them to evaluate the quality and design of the home before committing to purchase.

Advantages and disadvantages of buying an off-plan apartment

Buying an off-plan apartment in Madrid offers a number of significant advantages, but it also comes with certain risks and challenges. The main advantages include:

  • Better price: Off-plan apartments usually have a lower initial price compared to already built homes. The initial price is reduced when compared to the final purchase price. Savings are often up to 15%.
  • Design flexibility: Buyers have the opportunity to customise the layout and finishes of their home before construction begins.
  • Longer payment terms: Developers usually offer payment facilities that allow buyers to pay for the home in instalments during the construction process.

However, there are also disadvantages and risks associated with buying an off-plan apartment, such as possible delays in the construction or delivery of the apartment, changes to the design, specifications or quality, and the possibility that the developer may not meet its contractual obligations.

Other considerations

When making the decision to buy an off-plan apartment in Madrid, it is important to do your research and consider all the relevant factors. This includes carefully reviewing the sale and purchase agreement, checking the builder’s reputation and experience, and making sure you understand the payment terms and guarantees offered.

Additionally, it is advisable to take legal and financial advice to ensure that the transaction is completed safely and satisfactorily.
When buying a new home, it is possible that the final condition may not be 100% what is shown on paper. With due diligence and proper guidance, buying an off-plan apartment can be an excellent long-term investment.

Alternatives and perspectives

If buying off-plan does not suit your needs or preferences, you can also consider buying a second-hand home. This option offers advantages such as affordable prices when buying a home to renovate, a better location as new projects are usually built on the outskirts of cities, and the opportunity to customise the property to suit your tastes and needs as you have the option to renovate the home.

Owners and investors in Madrid within the M30

Visit these posts to learn more about real estate investment in Madrid, the key steps to buying a house in Spain or how housing reform can improve your profitability.
Likewise, determine what type of operation you want for your rental property by reading about the rentals types to improve profitability.
DFLAT accommodates top companies, executives, expatriates and masters students. We have corporate apartments, student apartments and short term apartments that we market through B2C, B2B and our own channels.