Real estate developers: How are new homes built and sold in Spain?
Developers, builders, or real estate agencies. The truth is that the general public is unaware of who is behind the construction of a new home. Sometimes, all phases of the process are carried out by a single company that encompasses all services, or different entities are involved for each task.
Who are real estate developers?
A development entity is one that owns the land on which property or other types of urban development projects will be constructed. This means that one of its main functions is to search for and purchase land in order to build new homes.
Generally, for the construction work, it usually collaborates with a third-party construction company, as it has the capacity to carry out the construction from start to finish. Thus, one of the first steps for the developer, after acquiring the land, is to contact an architect to design the project, which can be modified as many times as necessary to assess the feasibility of new construction and determine what is necessary for its development. Once the developers give their approval, the required procedures must begin with the authorities, with the aim of ensuring that the construction complies with the regulations and urban development plans of the municipality.
After completing all these procedures, a building surveyor must be hired, who will be responsible for ensuring that the work is carried out correctly. Therefore, the developer simply requires investment to finance the construction and hire third parties to begin all the work.
In recent years, there have been developers who are also construction companies, which benefits the monitoring of the work. This way, the buyer can directly know all the details of their property without having to go to third parties (construction companies, architects, and the like), as all these professionals are part of their staff.
Real Estate Developers: Who are they and what are their functions in the development of a new construction project?
Real estate developers are entities that combine the functions of a construction company and those of a real estate agency. In this way, these companies and/or professionals offer an extra service, improving the service provided by construction companies and real estate agents in most cases.
The real estate developer integrates all the phases of a construction project. That is to say, they are responsible for acquiring the land where new homes will be built. They must also ensure the proper development of the construction, as well as be in charge of marketing the properties of the new development. Thus, they have the ability to show their clients their own land and even involve the buyer in the design of their home, offering them the opportunity to participate in its distribution. In contrast, a real estate agency can only show finished properties that are in the commercialization phase.
In short, they provide a commonly known "all-in-one" service, which becomes an extra benefit for buyers of new construction projects, as they are aware at all times of the status of their future home and are involved in its construction.
Functions of a real estate developer
This type of company encompasses a wide range of activities related to the building process. These include:
- Study and analysis of the land.
- Land acquisition: The condition of the site is essential for the construction of the development. Similarly, negotiating the final price will impact the ease of selling future properties.
- Analysis of the construction project: Developing an economic plan, understanding the necessary investment, determining required licenses, examining the marketing of the properties, etc.
- Project financing: Solvency to plan and finance the project is crucial before starting the entire process.
- Administrative management: Conducting all necessary procedures required by municipal authorities.
- Construction: This can be the responsibility of the developer or a third-party construction company.
- Off-plan or early-stage sales: Sales in these situations are often common, as the final price is reduced by up to 30%.
- Registration of new build properties in the Land Registry.
- Marketing plan: Understanding the ideal buyer, designing a strategy for the subsequent sale of the properties, preparing solutions for customer needs, studying the market, analyzing data and metrics, tracking objectives, etc.
- Sale of completed properties.
- Customer service.
- Legal and financial advice
New home builder: who is it and what is its role?
It is the company responsible for bringing to life what is depicted in the plans. To do this, it has a large staff of professionals, specialized in all fields related to new home construction. That is, the foundation, transportation of materials, finishes, electrical systems, plumbing, and the like. All of this is done with the latest technology, efficient and responsible for the environment, which facilitates work, providing greater quality and guarantee than old buildings.
Its main purpose is to obtain maximum performance from the homes, which translates into adjusting the established budget so that the profit from the sale is as high as possible. Therefore, the construction industry has high competition, and things are not always done correctly.
The builder plays a fundamental role in the development and sale of a development, not only because they build the building, but also because their reputation will also influence the final price and sales capacity. After completing the work, the builder hands over the entire building to the developer to market it.
Stages of construction of a new development
A new housing development goes through different stages, from the project design to the signing and delivery of deeds. This process usually takes around 24 months. The stages of the construction are:
- Land analysis and study.
- Viability of construction, with the design of the preliminary project, will always comply with the urban planning regulations.
- Completion of the project, which must be approved by the Architects' Association of the municipality.
- Obtaining permits and licenses.
- Registration of the properties in the Property Registry.
- Pre-sale of the properties.
- Construction of the housing development.
- Completion and delivery of keys and deeds.
Spain's most famous new build developments
New construction in Spain is concentrated in the main cities, and provincial capitals, especially in Madrid and Barcelona. It is also concentrated on the Mediterranean coast and the Costa del Sol, where the population density is higher, as well as the tourist attraction and foreign investment. Some of the most well-known promotions in the country are:
- Idilia Views, en Rincón de la Victoria (Málaga).
- Célere Finestrelles II, Barcelona.
- Habitat Alborán, Torremolinos (Málaga).
- ASG Homes, Vistahermosa (Alicante).
- Bell Sarrià, Barcelona.
- Park & Palace, Madrid.
- Sky Homes, Valencia.
- Residencial Nereidas, Torremolinos (Málaga).
- Isla de Pedrosa de Gestilar, Valdebebas (Madrid).
- Marein Banús, Puerto Banús, Marbella (Málaga).
