Why do resale properties still dominate the market?

In any dynamic real estate market buyers will have a choice of two types of property: new build (under construction) and resale (existing). A lot of people wonder, which is the best option, which offers the greatest value for money and why resales tend to dominate the market. Just to be clear, while newly built modern homes are highly prized and very much in demand, the bulk of properties bought and sold across Spain, as in most countries, consists of existing resales.

The appeal of new-build homes

New properties tend to be most highly prized both in large urban centres such as Madrid, whose new suburban areas expand with the construction of new homes, and in luxury resort destinations such as the Costa del Sol. This is because they offer a number of clear advantages:

• They’re new, and as the first occupant you step into a fresh home ready to enjoy and decorate according to your taste and lifestyle preferences.
• They feature the latest technology, design and modern home comforts.
• They can often be personalised if you buy off-plan.
• New properties are the most energy efficient and generally more sustainably built, and tend to have more lifestyle features such as spas and gyms.
• The open-plan layouts, modern materials and décor suit contemporary tastes.

Market proportions

In spite of this, only around 20% of property transactions in Spain involve new build homes, a surprisingly low proportion and considerably down from the construction boom of the 2000s.
(Source: Caixabank)

Proportion of new builds and resales in Spain

There is a clear and rather dramatic drop visible in the market share of new build versus resale properties, due in part to an exaggerated proportion during the construction boom of the 2000s leading up to the financial crisis, the dearth of new construction in the post-recession era, and the gradual recuperation of new build market share up to the present moment.

New builds are registering a gradual yet continued comeback. In the first eight months of 2025, the number of new build properties sold in Spain grew by 7,7% in real terms compared with the same period in 2024, while resales dropped by 3,1%, resulting in a new build market share of 20,3% - up from 19,1% in 2024. (Source: Tinsa).

Why resales dominate the market

So why do resales dominate the market if new builds are so popular? Well, apart from the fact that resale properties have their own advantages to offer, the limited impact of new builds in the Spanish property market is directly related to their limited supply. In other words, while the construction of new properties has been increasing in recent years it still cannot satisfy more than a relatively small percentage of overall demand.

This is also because new projects tend to be rather more boutique, upmarket and smaller than they were during the property boom of the 2000s, when banks still provided the financing. Now that developers have to source financing from private lenders the projects tend to be smaller as the appetite for risk has declined and the main focus of demand has moved upwards to smaller, more luxurious property developments.

Resale advantages

• Older properties often occupy the best -prime- locations
• They generally offer more value for money, meaning that you get more home for your money
• Resale properties tend to be larger and offer renovation and investment potential

Price trends

One of the key factors differentiating new build and resale properties is price, with the former experiencing more rapid price increases. Over the past year, the price of new builds rose by 7,6% in nominal terms, compared with 4% for resales. (Source: Idealista).

In Marbella, for example, the average price per square metre is €4.130 for new builds – 36% higher than resales. The reason for this divergence is of course related to the price pressure put on newly built homes by the excess of demand over supply, but also by high land and construction costs, as well as the higher levels of technology and amenities they feature. (Source: Tinsa).

Estimated costs and taxes in the purchase of a resale residential property priced at 1.000.000€

Estimated costs and taxes in the purchase of a new build residential property priced at 1,000,000€ directly from the developer

The wide range in notary and registry fees is due to factors such as the property price, the length and complexity of the deed, and whether a mortgage is registered.

Although highly advisable, hiring a lawyer to purchase a property is not mandatory in Spain, and legal fees may vary depending on factors such as the property’s value and the complexity of the transaction.

In summary

While the demand for newly built modern homes is high, supply is limited and many buyers are drawn to the greater value for money, space, charm and also good locations of resale properties. In addition, they offer scope for price negotiation and renovation potential, making many a good investment.

So, while just under 80% of buyers choose resales, almost out of a lack of alternative options, there are also many reasons why an existing property can be the best option. It all depends on whether you are willing to pay a premium for that fresh, new-home feel, contemporary design, modern technology and amenities, or prefer more space, architectural charm and value for money.

Pia Arrieta, 27 Oct 2025 - Intelligence