TL;DR – Which Should You Buy?
Ultimately, it depends on your priorities.
If you want brand new modern designs, energy efficiency, and minimal upkeep, a new build is likely the right move.
If you’re after character, prime location, and long-term appreciation, a resale property might offer better value.
Is it Better to Buy a New Construction or an Existing Home in Spain?
When choosing between a newly built home and an existing one, you’ll need to consider more than just price. Location, legal structure, maintenance, amenities, and lifestyle all carry weight.
New builds often come with modern designs, energy efficiency, and warranties that reduce short-term maintenance costs. However, they’re typically found in newer developments that may be farther from the coast or urban centers.
Resale homes, on the other hand, tend to be in more established neighborhoods with mature landscaping, better land plots, and sometimes sea views. They often offer more space for the price and come with architectural character, but they may require updating or renovation.
New Build vs Resale Property Main Differences
The main difference between a new build and a resale property is that the former is typically found in newer developments, which may be further from the coast or urban centers, while the latter is usually found in more established neighborhoods with mature landscaping, better land plots, and sometimes sea views.
One of the clearest financial differences between the two property types in Spain is how they’re taxed.
- New builds are subject to a 10% value-added tax (IVA) on the sale price, regardless of the property’s value.
- Resale homes are taxed via a progressive property transfer tax (ITP), ranging from 8% to 11% depending on the sale price and region.
This difference can significantly impact your total budget, especially for high-end purchases. Additionally, the cost per square meter varies greatly by location across Mallorca, so local market knowledge is essential for accurate comparisons.
Understanding New Build and Resale Properties in Mallorca
New builds in Mallorca appeal to buyers seeking open layouts, smart appliances, and higher energy ratings. These homes are turnkey, untouched, and built with modern living and tech in mind.
Resale homes, by contrast, bring established charm. They’re often located in mature communities, with unique architecture and private outdoor spaces that can cater to your family’s needs. Choosing between them is about more than age—it’s about lifestyle, investment goals, and how much change you want to manage.
Step inside this new construction in Palma’s Old Town ⇒
What Qualifies as a New Build in Mallorca?
A new build is a property that’s never been lived in and is typically part of a newly developed area or custom project, which involves various stages of construction. The stage of construction can vary significantly; some are delivered move-in ready, while others are bought off-plan and completed months later.
Buyers can often choose layouts, finishes, and materials. However, building timelines can be impacted by permits, materials, and weather.
Defining Resale Properties on the Island
Resale homes have a lived-in history and often reflect Mallorca’s architectural heritage. Many come with landscaped gardens, larger plots, and a sense of community in long-established neighbourhoods.
Their unique character and location can be a draw for buyers who appreciate vintage elements and mature landscapes, but upgrades are often needed to bring them up to modern standards.
Renovation Risk vs Peace of Mind: What Matters More?
|
Factor
|
New Build
|
Resale Property
|
|---|---|---|
|
Condition
|
Turnkey, brand new
|
Varies—may require updates
|
|
Maintenance (first 5 years)
|
Minimal
|
Medium to high
|
|
Renovation Needs
|
Optional (mostly cosmetic)
|
Likely (structural or cosmetic)
|
|
Design Flexibility
|
Pre-selected options during build
|
Full customization via renovation
|
|
Cost Predictability
|
High
|
Medium to low (more variables)
|
|
Time to Move In
|
Delayed if off-plan
|
Immediate or as-is
|
|
Long-Term ROI Potential
|
Stable if location is strong
|
High if renovated well
|
One of the biggest decision points for buyers in Mallorca, especially first-time buyers and international investors, is how much time, effort, and uncertainty they’re willing to accept post-purchase. A move-in-ready new build can offer peace of mind, while a resale may require vision, patience, and a willingness to manage renovations.
New Builds: Turnkey Comfort and Fewer Surprises
New construction properties are ideal for those who want a move-in-ready experience with minimal intervention. Many buyers prioritize:
- Modern electrical systems and plumbing that meet current safety codes
- Modern electrical and plumbing that meet current safety codes
- Low immediate maintenance costs, especially in the first 3–5 years
- Predictable costs (HOA, property tax, utilities) with less worry about emergency repairs
This suits buyers who are relocating, using the property seasonally, or prefer a more “lock-and-leave” lifestyle.
“Buyers who don’t want to deal with ongoing repairs or renovations often feel more comfortable with a new build—especially when time and convenience matter more than long-term ROI.” – Reiderstad Invest team insight
Explore this new build with parking, a balcony, an elevator, and a plot size of 90m2 ⇒
Resale Homes: Long-Term Value with More Complexity
On the flip side, resales come with existing infrastructure that may be aging or out of date. But for buyers who are renovation-savvy or working with architects and designers, these properties can offer:
- Character-rich structures in premium locations with architectural appeal
- Larger lots, mature gardens, and classic layouts that can be reimagined
- Lower purchase price with potential for value appreciation through upgrades
- The opportunity to personalize the home extensively (though at a cost)
Resales may involve:
- Unexpected costs for roofing, plumbing, insulation, or foundations
- The need for permits, especially in protected zones or with structural changes
- Delays caused by local contractor availability, planning approvals, or material sourcing
“Those willing to invest time and resources into renovation often unlock greater value and character, but it’s not for everyone.” – Reiderstad Invest experience with long-term buyers
Comparing Purchase Prices: New Build vs Resale
| Description | New Build Costs | Resale Property Costs |
|---|---|---|
| Average Sales Price | Higher upfront | Lower initial price |
| Square Footage | Typically more spacious | Varies widely |
| Additional Expenses | Premium upgrades, HOA | Maintenance, updates |
While new builds offer value in energy savings and low maintenance, resale homes may yield long-term appreciation if well-located or tastefully restored.
Ongoing Costs and Unexpected Expenses
Whether you’re buying a new build or a resale property, ongoing costs can vary widely depending on the type of home and its location.
While new builds often come with lower maintenance in the early years, clients should still budget for post-completion costs. This includes landscaping, fencing, lighting, and occasionally even final interior or exterior finishes. Many buyers are surprised by the extent of these after-purchase investments.
Newly built homes generally require less maintenance in the first few years, but still come with costs such as:
- Homeowners association (HOA) fees (gastos de comunidad)
- Premium upgrades or custom finishes
- Initial garden landscaping and outdoor furnishings
Resale properties, while often priced lower upfront, may bring hidden expenses over time:
- Roof, HVAC, or plumbing replacements (based on age)
- Cosmetic upgrades (kitchens, bathrooms, flooring)
- Energy efficiency improvements (windows, insulation)
- Termite or water damage repair in older structures
HOA fees, in particular, can apply to both property types.
Depending on the community, fees can range from €60 to over €600 per month, covering shared amenities like pools, elevators, security, maintenance staff, and communal landscaping. In luxury estates, gated communities, or apartment complexes, these costs can add up and should always be factored into your long-term budget.
Legal and Regulatory Differences
Navigating permits, licenses, and due diligence differs between property types in Mallorca. New builds require strict compliance with zoning and development regulations, while resale homes require full title checks and potential renovation permits.
Navigating Spanish Laws for New Builds
New builds require:
- Urban-qualified land
- Full building permits and licenses
- Compliance with regional density limits and construction codes
- Possible participation in homeowners’ associations
Title, Permits, and Due Diligence for Resale Homes
For resale homes, the legal focus shifts to:
- Verifying the property’s title
- Checking for outstanding liens or debts
- Ensuring past renovations comply with local building codes
- Securing renovation permits if needed
Thorough due diligence is crucial, especially when buying older properties with undocumented modifications.
Lifestyle and Personalization Factors
Buyers seeking a tailor-made experience often prefer new builds, which allow for choices in layout, finishes, and energy systems. In contrast, those drawn to history, charm, and established communities often gravitate toward resale homes featuring more traditional layouts.
Based on our experience advising clients, new construction is often built where land is available, typically further from core city areas or in newly developed zones. If walkability, mature landscaping, or access to long-standing amenities is important to you, a resale home might better align with your lifestyle.
Customization and Modern Features in New Builds
New builds offer a level of personalization that an existing home purchase can’t provide. Buyers may have the option to select appliances, fixtures, and layouts that suit their preferences. But others find that older homes reflect timeless design choices and a character that’s hard to replicate.
New builds let you:
- Select layout configurations
- Choose finishes (flooring, countertops, fixtures)
- Install smart home systems from the start
- Maximise indoor-outdoor flow with modern design
For those wanting a home that fits their lifestyle perfectly, new builds are ideal.
Character, Community, and Established Neighborhoods in Resales
Resale homes offer:
- Traditional façades and interiors with personality
- Long-established neighbourhoods and local culture
- Mature gardens and natural privacy
- Walkable proximity to shops, markets, and historic sites
They’re especially appealing for buyers who want authenticity, not just efficiency.
Timeframes and Buying Process
- Resale purchases typically close within 30–90 days and allow for faster occupancy.
- New builds, particularly off-plan, involve more steps: land selection, construction phases, and inspection rounds.
Risks of Delays and Project Completion
New builds come with risks:
- Material shortages
- Permit delays
- Weather or workforce issues
- Unexpected cost escalations
Buyers must stay flexible and plan for possible timeline shifts.
Will the PRE Housing Law Affect Luxury Buyers?
While the new PRE housing framework is set to unlock over 20,000 affordable homes in Palma, it has little direct impact on high-net-worth individuals or luxury developers. The law is focused on protected and price-limited housing, reserved for long-term residents meeting specific criteria.
However, the indirect benefits matter. By stabilizing the broader market and easing mid-tier housing pressure, the PRE initiative can help preserve price integrity and planning clarity in premium zones like Son Vida, Deià, and Port d’Andratx. For luxury buyers, this creates a more balanced long-term investment climate, without compromising exclusivity
What a Luxury New Build Looks Like in Palma Old Town
Take this 3-bedroom, 324 m² designer townhouse listed by us in Palma’s Old Town. While it’s technically a new build, it blends timeless architectural elements like wooden beams and stonework with high-end features: private lift, rooftop pool, garage, and premium brands like Bang & Olufsen and Gaggenau.
Despite being in the city center, it feels private and serene, offering a rare mix of convenience and calm. These kinds of luxury new builds are tailored for buyers who want Palma’s urban lifestyle without sacrificing design, privacy, or comfort.
Key highlights:
- Rooftop pool with solarium and outdoor kitchen
- Private garage and elevator
- 4 floors including a wine-bar and designer kitchen
- Price: €6.4M
This is the kind of new build that makes sense: central location, architectural character, and high-end features already installed — no waiting, no guesswork.
Conclusion
Choosing between a new build or a resale property in Mallorca ultimately depends on your lifestyle preferences, appetite for involvement, and long-term goals. New builds offer modern design, energy efficiency, and a turnkey experience. Resale homes often deliver charm, space, and better positioning in established neighborhoods.
Neither is strictly better—the right choice comes down to how you want to live, what you’re willing to manage, and where you see long-term value.
Whichever path you take, ensure it aligns not just with your budget, but with the way you truly want to use and enjoy your home. For expert guidance tailored to your needs, Reiderstad Invest is here to help.
Frequently Asked Questions
Is it easier to get a mortgage for a new build or resale in Mallorca?
Lenders typically feel more confident with resales due to known valuations and records. New builds may require additional conditions or staged drawdowns.
What taxes apply to each property type?
New builds: 10% VAT + 1.5% stamp duty
Resales: 6–10% ITP transfer tax
Your financial advisor should help you calculate the true net cost.
Are new builds more energy-efficient?
Yes. They often meet higher energy codes, with smart systems and better insulation. Resale homes may need upgrades.
What about maintenance costs?
New builds have warranties and fewer issues early on. Resales may need work on plumbing, roofing, or heating systems depending on age.
Can foreigners buy both types of property?
Yes. Non-residents can buy freely in Mallorca. An experienced agent and lawyer will handle paperwork and compliance, including NIE registration and fund sourcing.
