New Developments in El Faro, Mijas

Most schemes offer two or three-bedroom layouts within reach of the beach, golf courses and shops.

Buying off-plan in El Faro means committing to a property before the builder has finished it, often before construction has even begun. You pay in stages as the work progresses, typically a reservation deposit, a private purchase contract payment, and then further instalments tied to milestones such as foundations, structure and roof completion. The developer is legally required to secure each payment you make before handover with a bank guarantee or insurance policy, which protects your money if the scheme is not completed. Ask for proof of the guarantee at the outset and confirm it covers the full amount you will pay before receiving the keys.

Unlike a resale property, you will pay Value Added Tax rather than transfer tax on a new build purchased from a developer. VAT applies to the sale price, and you also pay Stamp Duty, known as AJD, on the mortgage deed if you borrow. The exact rates depend on the region and can change, so confirm the current figures with your lawyer before you exchange contracts. You do not pay ITP, the transfer tax charged on resale homes, when buying new from a developer.

The developer cannot legally hand over the keys until the town hall has issued the Licence of First Occupation, which certifies that the building meets safety and planning standards. This licence is separate from the builder's own project approvals and comes at the end of the process, so delays in obtaining it can push back your completion date even if the construction itself finishes on time. Make sure your purchase contract states what happens if completion is delayed and whether you are entitled to penalty payments or the right to withdraw.

Before you accept the keys, arrange a snagging inspection to document any defects or unfinished work. Spanish law gives you a legal warranty under the Ley de Ordenación de la Edificación: one year on minor finishes such as paint and tiles, three years on elements affecting habitability such as plumbing and insulation, and ten years on structural defects. The clock starts when you take formal possession, so identifying problems at handover and getting them recorded gives you the strongest position for claiming repairs. Some buyers hire an independent surveyor to prepare the snagging list, particularly if they are not attending the handover in person.

When assessing a scheme, look beyond the brochure and check who is behind the development. The trading name on the marketing may front a special purpose vehicle set up for that single project, so ask your lawyer to search the company register and identify the individuals or parent group ultimately responsible. A developer with a track record of completed projects in the area, ideally ones you can visit and inspect, carries less risk than a newly formed entity with no history. Even so, the bank guarantee matters more than the brand: if the scheme fails, your claim is against the guarantee, not against the developer's reputation.

Off-plan purchases take longer to complete than buying a resale home. Where a resale transaction might complete within two or three months of agreeing terms, an off-plan contract ties you in for the time it takes to build, which can be eighteen months to two years or more from reservation to handover. You gain the ability to choose your unit early, sometimes to specify finishes or layouts, and you buy at today's price for a property you will own in the future. The trade-off is less certainty over the exact delivery date and no possibility of viewing the finished apartment before you commit.

El Faro's new supply sits close to the coast, with some schemes within walking distance of the beach and most positioned near golf courses, shops and the town itself. The market favours apartments over houses, and the bedroom count centres on two and three-bed layouts suited to couples, small families and buyers wanting a guest room or home office. Because almost all the stock is sold off-plan, you will not find many completed units sitting unsold: developers release phases as they go and typically sell each block before moving on to the next.