Buying off-plan properties, or projects that have not yet begun construction, is a form of property acquisition that is currently on the rise in the Algarve, because if you have the funds, time, and patience, you can have your ‘dream property’ built to your own specifications and wishes, at a fraction of the cost of purchasing and/or renovating an existing villa!
If you have been looking to make the move to the Algarve or source a suitable investment property in the area, then you have probably noticed an abundance of people in a similar position due to the shortage of property for sale (with good listings few and far between), which has ultimately resulted in a consistent price hike over the last couple of years.
Respected local developers that are in touch with the reality of the current market have answered the real estate market’s call for new stock by introducing a number of exciting new developments to the Quinta do Lago, Vale do Lobo and Vilamoura regions.
These off-plan projects offer a great alternative, and have increased property options for many, regardless of whether you are purchasing property for personal use or as a fiscal investment. These projects present an array of advantages over and above the increased investment opportunities,however, naturally there are also some associated risks – let’s take a closer look.
The most obvious benefit of buying an off-plan project from a developer has to be the cost involved. If you are looking to build your next forever home, this route will often be a far more cost-friendly option to purchasing an existing property or taking on a renovation project. Furthermore, when purchasing as an investment, the financial gain of an off-plan project is exponentially greater because you are acquiring the asset for the lowest price possible and as the project progresses the value of the property increases and once complete these properties will be on par with the current market prices.
New constructions come with strict regulations for build quality with modern materials and warranties on appliances. With that being said these strict regulations mean that projects may take longer to complete in order to meet criteria.
Designing your house also affords more freedom and flexibility to personalise your home to your unique tastes and requirements. However, it is important to keep in mind that these personal changes may carry extra costs should you select more expensive materials/appliances than those on the original project.
As with any property purchase, it is always advisable to conduct a thorough analysis of the information and data on the property/project before signing anything, particularly due to the high risk, high reward nature of these investments. This is where the assistance of a lawyer would be advised, to ensure a proper assessment of the property, the vendor (construction company/developer) and the risks of the project, which in some cases may take several years to complete. One of the points that should be included in the pre-sale contract is the deadline for the conclusion of the final purchase contract as well the conditions for its conclusion.
As mentioned above, the closer the project is to completion, particularly in our current market of high demand, the more the value of the property is expected to increase and the higher the expected profits of those that invested early. High risk, high reward.
At Regency Luxury Property we work closely with some of the best developers, architects and construction companies in the Algarve with access to a number of prestigious new projects in Quinta do Lago, Vale do Lobo, Vilamoura and their surrounding areas.
Let us help you find the perfect project for your unique real estate journey, Contact Us ( Contact Us – Regency Luxury Property ) today!