{"id":2876,"date":"2020-03-09T14:02:27","date_gmt":"2020-03-09T13:02:27","guid":{"rendered":"https:\/\/www.marbellaforsale.com\/blog\/?p=2876"},"modified":"2020-03-20T15:04:54","modified_gmt":"2020-03-20T14:04:54","slug":"new-property-gaining-ground","status":"publish","type":"post","link":"https:\/\/www.marbellaforsale.com\/blog\/new-property-gaining-ground\/","title":{"rendered":"New Property Gaining Ground"},"content":{"rendered":"
\"Buyers

Buyers have a large choice of new build<\/p><\/div>\n

With new developments seeing a resurgence since dropping following the crisis, it is no wonder that in 2019, 37% of buyers chose a new property.<\/strong> This is significantly higher than the previous two years. In 2018 new property was the choice for 29% of buyers, and only 20% in 2017.<\/p>\n

Buyers are of course still choosy and they don\u2019t limit themselves to only new. In 2017, those who were considering only new property accounted for 8% of buyers, 15% in 2018, and rising to 20% in 2019. The other 80% said they would consider both new and second-hand property, according to a report from fotocasa<\/a>.<\/p>\n

In Madrid, we see the highest percentage of people looking only for new property at 27%<\/strong>. The age group most likely to choose this route are 45 to 54 years old, with 22% of them choosing only new build.<\/p>\n

The change has of course come about in no small part thanks to the increase in supply of new property that had fallen in the years following the crisis.<\/p>\n

Who chooses new property?<\/h3>\n

53% of buyers who looked at buying only new property in 2019 were women. 45% of them were upper-middle class, and 25% were middle class. This is generally in line with figures from the previous year.<\/p>\n

The age group appears to be more mature with the average age of buyers of new property in 2019 moving up to 38 – 40 years old<\/p>\n

The search process of those looking for new property also slightly differs from those considering second-hand property. For example, in relation to location, the majority begin their search looking in their own town, but a different neighbourhood. Furthermore, 25% of the buyers manage to close the deal within two months<\/strong>. 21% take between two and four months. 14% take one to two years, and 7% take longer than two years to find and buy the right property.<\/p>\n

These timelines fit, in general, with the expectations of the buyers who considered buying new property<\/a>: 35% believe that it took much or somewhat less time than expected, another 39% thought that the timeline was more or less what they expected and the remaining 26% that it was a little or much more than expected.<\/p>\n

Why new? No reforms, thank you.<\/h3>\n

If there is something that defines this segment of the market is its aversion to reforms: up to 43% of the buyers who considered the option of new developments (identical percentage in 2018) did so to avoid the need to reform a property<\/strong>. The search for better quality property and additional facilities such as the garage or storage room were all important for these buyers.<\/p>\n

Virtually nothing has changed with respect to 2018 in the reasons why these buyers consider new developments. The only detail is the greater consideration (from 13% in 2018 to 19% in 2019) of having time to save for the purchase of a home which is under construction. It is logical that this is the case since, as recent reports have found, the lack of sufficient savings to make a down payment is a common problem given the rise in property prices and the rigidity that banks apply since the crisis when granting mortgages.<\/p>\n

However, we must realise that not all buyers who considered new construction ended up buying one. In fact, those who did manage to buy a newly built property register higher percentages in all these reasons stated than those who, despite having considered this segment, finally opted to buy a second-hand house.<\/p>\n

Higher prices in New Property over Second-hand<\/h3>\n

The last group who considered new property but didn’t buy one said that price was the main barrier. 57% said the price was the reason they gave up on the idea<\/strong>. In 2018 that percentage was 50%. Another argument put forward as a reason not to buy new was a lack of supply in their chosen area.<\/p>\n

But price is definitely the key. Even those who did buy a new property said it was expensive. 71% of new property buyers in 2019 said the price was higher than they had expected when beginning their search, especially when compared to similar second-hand property.<\/p>\n

This is why it is not surprising that the most important characteristic of the new developments by buyers who are looking is that the price fits their budget, a condition that receives 8.5 points out of 10. Other essentials in the property, such as the number of rooms, the surface area\/distribution and the environment (neighbourhood, services, orientation, location) are also important.<\/p>\n

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