The new-build market in Costa Blanca is going through one of its most active cycles in the last decade in 2026. Sustained international demand, a shortage of ready-to-build land in established municipalities, and interest rates that are gradually easing have driven developer activity to levels not seen since before the 2008 crisis. But buying off-plan carries specific risks that don’t exist when buying a finished home. This guide is designed to get you to the signing table with all the information you need.
Why does Costa Blanca have so much new-build activity in 2026?
Costa Blanca — the 212 kilometres of Alicante coastline stretching from Dénia to Pilar de la Horadada — is the most active international property destination on the Spanish Mediterranean by volume of foreign-buyer transactions. Municipalities such as Finestrat, Villajoyosa, Guardamar del Segura, Orihuela Costa and Calpe account for most of the active new-build projects, spanning both the mid-market and the premium and luxury segments.
Three factors explain this concentration. First, the availability of developable land still pending construction in the coastal municipalities of Alicante province, far greater than in areas such as the Costa del Sol. Second, steady demand from European buyers — Polish, German, Belgian, Dutch, and Scandinavian — looking for second homes or rental-income investment assets. Third, the rising cost of resale homes, which has narrowed the price gap with new-build and made brand-new product more competitive.
If you’d like to put this momentum into context with concrete market data, we recommend reading our analysis on Costa Blanca property prices by municipality in 2026, where we break down price-per-square-metre trends in the main towns.
Buying off-plan: real advantages and risks you should know
Advantages of buying off-plan
Lower entry price. By buying at launch or early-marketing phase, buyers access developer pricing that can be 10% to 20% below the estimated market value at delivery. The appreciation that occurs during the construction period — typically 18 to 36 months — can amount to a significant gain.
Product customisation. In the early marketing phases, many developers allow buyers to choose finishes, kitchen layouts, or optional upgrades. This flexibility disappears with resale homes.
Staged financing. Payment is structured in instalments: an initial reservation, payments during construction, and the balance at completion. This lets the buyer plan the financial operation without needing the full capital upfront.
Risks of buying off-plan and how to mitigate them
Developer risk: the most serious contingency. If the developer enters insolvency proceedings before delivery, the buyer can lose the amounts paid on account if they aren’t properly guaranteed. The Building Planning Act (LOE) of 5 November 1999 and its subsequent regulations require the developer to guarantee, via bank guarantee or surety insurance, any amounts received before delivery. Demand this document before making any payment.
Delivery delays. Construction deadlines are frequently missed. A delay of 6 to 12 months versus the planned date is statistically common in the sector. The contract should specify the delivery date, penalties for delay, and the buyer’s right to terminate if the delay exceeds an agreed threshold.
Gap between project and reality. What’s shown in renders and mock-ups can differ from the final result in terms of finishes, views, or common areas. Demand the specifications document, detailing materials, brands, and technical specifications, as a binding contractual document.
Changes to the surroundings. An empty plot next to the development could become another building before delivery. Check the municipality’s urban planning and neighbouring building permits before signing.
The legal framework protecting new-build buyers in Spain in 2026
Buying off-plan new-build property in Spain is regulated by a legal framework that has evolved significantly since the 2008 crisis. The key pillars you should know are the following:
Law 38/1999 on Building Planning (LOE): Establishes the developer’s obligation to take out guarantees against hidden defects (10 years for structural elements, 3 for material damage, and 1 for finishing elements), and regulates handover of the works and the building’s log book. You can consult the full text on the BOE.
Royal Decree 515/1989 on consumer information in sales: Requires the developer to make available to the buyer, before signing, the general site plan, the property plan, the specifications document, the total price, and the payment method. See the housing consumer-protection regulations on the Ministry of Housing and Urban Agenda website.
Civil Code (Article 1124 et seq.): Underpins the buyer’s right to terminate the contract and demand a refund of amounts paid plus interest in the event of serious breach by the developer.
Law 57/1968: Although largely repealed by Law 20/2015, its principles for protecting advance payments remain in force through the requirement for guarantees and insurance. The Bank of Spain publishes useful information on how to verify the solvency of institutions issuing these guarantees.
The step-by-step off-plan buying process
1. Choosing the development and initial due diligence. Verify that the developer holds a granted building permit, or has at least applied for one. Check the Commercial Registry to confirm the developer’s solvency. Review whether it has delivered other developments and its track record.
2. Reservation. Typically between €3,000 and €10,000, with or without binding effect. Check whether it’s refundable if the private contract isn’t formalised, and under what conditions.
3. Private sale contract. The most important document in the transaction. It should include: total price, payment method and schedule, delivery date and penalties, the specifications document as a binding annex, a description of the property matching the approved project, and a guarantee for the amounts paid.
4. Payments during construction. Every payment must be accompanied by an individualised bank guarantee or insurance certificate covering that amount. Demand the guarantee before transferring funds.
5. Pre-delivery inspection visit. You have the right to visit the property before signing the deed to check it matches what was contracted. Draw up a snagging list that the developer must resolve before, or urgently after, handover.
6. Public deed before a notary. At this point the remaining price is settled, usually via a mortgage. The notary will verify the developer’s documentation and the building’s log book.
7. Settling taxes. Buying new-build property is subject to VAT (10% for a main residence, 4% for subsidised housing) plus Stamp Duty (AJD), whose rate varies by autonomous region. In the Valencian Community, AJD is 1.5%.
Areas with the most new-build activity in Costa Blanca in 2026
Developer activity is concentrated along several corridors. Finestrat and the northern hillside overlooking Benidorm Bay are home to some of the most ambitious residential projects around, with contemporary-design apartment complexes offering Mediterranean views. Guardamar del Segura and Orihuela Costa maintain steady activity in the mid-to-upper segment, offering good value for international buyers. Calpe, Altea and Jávea concentrate the highest-end new-build stock, with villa and luxury apartment projects aimed at high-net-worth European buyers.
To understand the lifestyle and buyer-profile differences between the various municipalities, we recommend reading our analysis Benidorm vs Altea: Two Ways of Life on the Costa Blanca, where we compare both destinations in depth.
Taxation for foreign buyers of new-build property: what to know before signing
Non-resident buyers acquiring new-build property in Costa Blanca need to bear three main tax obligations in mind:
NIE (Foreigner Identification Number): essential for signing the deed. It’s obtained at Immigration Offices or Spanish Consulates in the buyer’s country of residence. The process can be handled via power of attorney without needing to travel.
IRNR (Non-Resident Income Tax): if the property isn’t rented out, the non-resident pays annual tax on imputed income calculated on the property’s cadastral value. If it’s rented out, actual rental income is taxed. The general rate is 19% for EU/EEA residents and 24% for others.
Wealth Tax: non-residents with assets in Spain are subject to this tax on assets located in Spanish territory. The Valencian Community applies its own scale and exempt thresholds.
For any foreign buyer, it’s essential to get specific tax advice before signing. The Spanish Tax Agency publishes detailed information on IRNR and the tax treatment of non-resident investors in Spain.
How to choose a reliable developer in Costa Blanca
Not every developer active in the market has the same level of solvency and track record. Here are the criteria we recommend evaluating before committing capital:
Track record of past deliveries: a developer that has completed and delivered previous projects offers assurances that a newly formed company cannot. Look for references from previous buyers.
Financial solvency: check the developer’s latest annual accounts filed with the Commercial Registry. A well-capitalised developer carries less risk of construction stalling.
Contracted builder: knowing who physically carries out the works is as important as knowing who is developing it. An experienced builder with its own track record is an additional safeguard.
Building permit: a development without a granted permit carries the implicit risk that the town council could refuse or condition it, delaying the start of works. Ask for a copy of the permit or the receipt confirming the application.
At GG Real Estate Costa Blanca we support international buyers throughout the entire new-build purchase process, from selecting the development to signing at the notary. Browse our catalogue of new-build properties in Costa Blanca and talk to our team with no obligation.
