New Developments

There are no completely separate laws just for new builds, but there are a few important differences in practice. With off plan units you usually commit earlier, pay a reservation fee, then exchange with a deposit while the building is still under construction. Contracts will normally include a projected completion date and a long stop date, which is the latest date by which the developer must deliver. Stamp duty, legal fees and registration costs work in the same way as for resale property, although affordable housing schemes can have their own rules and clawback on early resale. For first and second time buyers there are important stamp duty concessions on the first £300,000 of the purchase price, even if the total price is higher, which can make a new build particularly attractive at popular price points.

Expect a reservation fee, then a formal exchange and deposit during construction

Contracts should include target completion and long stop dates for protection

Stamp duty rules apply as for other homes, with concessions for some buyers

Affordable schemes can carry separate conditions and resale restrictions

The process is similar to a resale, but with more emphasis on build progress and timing

Before you commit to any new development, you should look closely at the team delivering it. In Gibraltar there is a mix of long established local developers and newer entrants. Good developers will have a history of completed projects, such as well known marina complexes or central schemes like Midtown, North Gorge style townhouse projects, or sustainable buildings similar to Keystone Residence. You can review company filings, talk to your solicitor and, crucially, visit completed developments to see how they have stood the test of time. Look at the condition of common areas, lifts and façades, and ask residents how issues have been handled. A financially secure, experienced developer is more likely to deliver on time, maintain quality and honour aftercare obligations such as snagging and warranty claims. If information is vague or defensive, treat that as a warning sign and proceed carefully.

Visit other schemes the same developer has already finished

Ask your solicitor to check company background and any charges on the site

Look at how well older developments are maintained and managed

Be cautious if completion dates move repeatedly without clear reasons

Prefer projects where funding and planning approvals are already in place

For most Gibraltar new builds you will typically pay a small reservation fee first, often a few thousand pounds, then a larger deposit when you exchange contracts. Local guidance suggests that many banks and buyers work on deposits of around 10 to 20 percent of the purchase price, sometimes higher for non residents or purely investment purchases. On a £500,000 apartment, that usually means between £50,000 and £100,000 from your own funds, plus purchase costs. Some new build and off plan schemes structure deposit payments in stages, for example 10 percent at exchange, a further 10 percent at a construction milestone and the balance on completion. Your total commitment is the same, but the timing differs. It is important to be clear how each payment is held, whether it is protected, and what happens if there is a serious delay or the project is not completed as planned.

Budget for at least 10 to 20 percent deposit, higher for some buyer profiles

Expect an initial reservation fee, then a larger deposit at exchange of contracts

Some schemes use stage payments linked to construction milestones

Confirm where each payment is held and how your money is protected

vMake sure you can comfortably fund both deposits and purchase costs such as stamp duty

Protection for reservation fees and stage payments is critical in any off plan purchase. In Gibraltar, the exact structure can vary between developments, so you must rely on your solicitor to confirm how your money is handled. In many cases, reservation fees and deposits are held in a client account by the developer’s lawyers or a trustee until certain conditions are met. For larger schemes, lenders that fund the project may also impose rules on how deposits are held and released. You should ask directly whether there are bank guarantees, insurance policies or escrow arrangements in place for stage payments. If you are used to buying across the border, where law requires bank guarantees on off plan stage payments, you will know how valuable this protection is. Do not pay significant sums to a developer account without written confirmation from your solicitor that the risk is acceptable and the protections are robust.

Ask your solicitor to explain exactly where each payment goes and who controls it

Prefer structures that use client accounts, escrow or formal guarantees for deposits

Be wary of large payments directly into a developer trading account

Make sure the contract spells out what happens to your money if the project fails

Never rely purely on verbal assurances from sales staff about “safety” of funds

Buying a new build in Gibraltar usually means buying in a planned scheme, often off plan, rather than in an older block in areas like the Upper Town, Ocean Village or Queensway Quay. With new developments such as Midtown, North Gorge and Keystone Residence you often reserve early, pay a reservation fee, then exchange contracts with a 10–20% deposit while construction is still under way. Completion can be many months later, so you need to manage timescales and mortgage offers carefully. Resale properties tend to follow a more traditional sequence where you agree a price on a finished home and move to completion more quickly. New builds give you modern layouts, lifts, parking and facilities like pools and gyms, but you are also committing based on plans, specifications and the developer’s track record. In a compact market like Gibraltar, the choice is less about city versus suburb and more about “new scheme lifestyle” versus “established building and location.”

New builds often involve off plan contracts, deposits and long stop dates

Resales are finished homes with shorter gaps between offer, exchange and completion

Developments like Midtown and Keystone Residence offer modern facilities and parking

Older areas such as Ocean Village and the Upper Town offer more individual character and history

Your decision is a balance between certainty of a finished property and benefits of a brand new home

Recent market reports suggest Gibraltar’s overall average sits around £7,200 per square metre, with lower priced stock from roughly £3,000–£4,500 per square metre and prime units in top locations reaching £10,000–£11,000 per square metre. New luxury developments such as Midtown, Keystone Residence and high value marina schemes often sit toward the higher end of that range because they offer new construction, efficient layouts, lifts, parking and facilities like pools, gyms and roof gardens. For example, Midtown listings commonly show prices above £7,000 per square metre, in line with the current average for one and two bedroom apartments. A studio in Keystone Residence is currently marketed at around £7,700 per square metre. Older blocks without lifts, parking or amenities can be cheaper on a pure price per square metre basis, but may require more ongoing maintenance and upgrading.

Average Gibraltar rate is around £7,000–£7,300 per square metre across the market

Prime waterfront and new luxury schemes can reach £10,000–£11,000 per square metre

Midtown and similar central towers typically price above the general average

Keystone Residence studios show pricing around £7,700 per square metre as a guide

Older, simpler buildings can be cheaper but may lack lifts, parking and shared amenities

When you consider developments such as Midtown, North Gorge, Keystone Residence or upcoming Eastside phases, you are really assessing the developer as much as the building. Look for a history of completed projects that are still in good condition. Midtown, for instance, has established itself as a well regarded central address with high quality finishes, landscaped gardens and a pool that have bedded in well over time. North Gorge townhouses show how another team has handled family focused design, natural light and landscaping in the South District. For Keystone Residence, you can review planning information and marketing material around its nearly zero energy specification and location on Devil’s Tower Road near the new tunnel. Strong developers are transparent about build quality, warranties and aftercare and are not defensive when you ask to see previous work.

Visit completed developments by the same team and check condition of common areas

Ask how long they have been active in Gibraltar and what schemes they have delivered

Look for clear information on warranties, aftercare and snagging processes

Check that planning is fully approved and funding is in place for larger projects

Treat a developer’s communication style as a clue to how issues may be handled later

Assignment means selling your rights under the off plan contract to another buyer before the property is finished. Some developers allow this, often after a certain percentage of the price has been paid or a particular stage of construction is reached. Others prohibit assignment entirely or limit it to one transfer, usually subject to their consent and a fee. If assignment is allowed, you will need legal advice on how the process works, how any price uplift is treated and whether the developer or agent is entitled to a share of any profit. The incoming buyer will also need to be approved by the developer and, where relevant, the warranty provider and lender. Assignment can be a useful exit route if your circumstances change, but you should not assume it will always be possible or profitable. Market conditions will dictate how much interest exists in taking over your contract.

Check the contract for any right, or prohibition, on assignment before completion

Expect developer consent and a fee if assignment is permitted

Understand how any price uplift or “flip” profit will be treated

Ensure the incoming buyer is fully aware of all contract terms and obligations

Treat assignment as a possible safety valve, not a guaranteed investment strategy

Minor differences between the planned and final size can occur due to construction tolerances or technical adjustments. Many off plan contracts allow for small variations, often within a stated percentage. Problems arise when the finished internal area is materially smaller than advertised, especially if the price was calculated by reference to size. Some consumer guidance suggests that contracts should specify what happens if the difference exceeds an agreed tolerance, for example requiring a price reduction or giving the buyer a right to withdraw. Independent measurement at or shortly after completion can help you confirm the actual area. It is also wise to be cautious about marketing that quotes very approximate or “gross” areas including thick walls or external spaces without clarity. Your solicitor can look for fair measurement and variation clauses and advise what remedies you have if the property is significantly smaller than promised.

Contracts typically allow a small tolerance for size variations

Significant reductions in internal area may justify a price adjustment

Ask your solicitor to check measurement and variation clauses carefully

Consider commissioning an independent measurement on completion

Be wary of marketing that uses unclear or inflated size figures

Management can be handled in several ways. In some developments, a managing agent acts on behalf of the freeholder or developer, collecting service charges and organising maintenance. In others, a residents’ management company or owners’ association is created, giving owners a direct say in how the building is run. Your contract and lease should explain the structure, including how directors are appointed, how often meetings are held and how major decisions, such as large repairs or changes to rules, are approved. Good management is crucial for maintaining standards, controlling costs and preserving long term value. Poor management can lead to disputes, neglected repairs and rising charges. When assessing an off plan scheme, it is worth asking who the proposed managing agent is, what their experience is with similar buildings, and whether there is a plan for residents to take more control in future if they wish.

Check whether management is by a professional agent, residents’ company or both

Understand voting rights and how owners can influence decisions

Ask how often service charge accounts and budgets will be presented

Look at the track record of any named managing agent in other developments

Recognise that strong management is key to protecting your investment

Service charges pay for the upkeep of shared areas and services, such as corridors, lifts, gardens, lighting, cleaning, building insurance and sometimes concierge or leisure facilities. In a new development, the initial budget is usually prepared by the developer and managing agent, based on expected costs and occupancy. Once residents move in, service charge accounts are normally produced annually, and charges are adjusted to reflect real costs. High amenity developments with pools, gyms and 24 hour services will have higher charges than simple blocks with no lifts. Buyers should ask for a copy of the estimated budget before exchange and understand how often it will be reviewed, how reserve or sinking funds are built up, and what happens if there is a shortfall. Over time, resident controlled management structures can give owners more influence, but they also require active participation.

Service charges fund common area running costs and building insurance

Initial budgets are set by the developer and managing agent, then refined over time

More facilities usually mean higher ongoing service charges

Ask to see the projected budget and sinking fund arrangements in advance

Understand how charges are reviewed, approved and challenged

Restrictions on renting tend to come from three places: the building rules, your mortgage conditions and local regulations on short term lets. Many leases or community rules allow normal long term renting but may restrict holiday style letting, require minimum tenancy lengths or insist on professional management standards. Lenders sometimes prohibit certain types of letting, particularly very short stays, unless you use a specialist buy to let or holiday let mortgage. In tourist areas, you may also need a licence or registration number to run short term rentals legally, and the property must meet safety and compliance standards. Before you buy off plan with the intention to rent, check the lease, handbook or community rules for explicit wording, and discuss your plans with your broker. It is much easier to choose a development that fits your rental strategy from the start than to retrofit a strategy that conflicts with the rules.

Check the lease or building rules for limits on short term or long term rentals

Ensure your mortgage type permits the style of letting you have in mind

Investigate any local licensing or registration requirements for holiday lets

Consider noise, wear and tear and how neighbours might view frequent changeovers

Choose developments whose facilities and rules support your planned tenant profile

Mortgage offers are normally valid for a limited period, often around three to six months, though some lenders offer longer for new builds. If construction is delayed and completion drifts beyond your offer expiry, you may need to request an extension or apply again. An extension, if allowed, might require updated information, a fresh credit check or a new valuation. If interest rates have risen or your circumstances have changed, the lender could offer less favourable terms or, in some cases, decline. This is one of the key timing risks of buying off plan. To manage it, many buyers wait until the development reaches a certain stage before making a full mortgage application, and keep in regular contact with their broker and developer about progress. Your solicitor can also negotiate for realistic completion windows and long stop dates that reduce the chance of repeated offer expiry.

Check how long your lender’s offer is valid and whether extensions are possible

Be aware that reapplications or extensions can involve new checks and valuations

Changes in rates or personal circumstances may affect what you can borrow

Time your full application to align sensibly with the build programme

Maintain close contact with your broker, lender and developer about timelines

Handover is when the property is practically complete, your purchase completes and you receive the keys. Before this, the developer will usually issue a notice to complete once building control approvals and warranty sign off have been obtained. Many experts recommend arranging a snagging inspection as close as possible to handover, ideally before you move furniture in. Snagging is the process of identifying minor defects and unfinished items, such as paintwork issues, sticking doors, missing sealant, uneven tiling or small leaks. You record these in a snagging list, which is then passed to the developer or their aftercare team to resolve. More serious items that affect safety or habitability should be raised immediately. Keeping written and photographic records of snags and responses helps if you need to escalate issues later. Many warranty providers expect you to give the builder a reasonable chance to fix problems before making a claim.

Completion happens after building control sign off and warranty issue

Snagging should be done as early as possible, ideally before moving in fully

Typical snags include cosmetic and minor functional defects

Keep a dated, photographic record of issues and communications

Use the developer’s formal aftercare process and timescales for rectification

Using a solicitor experienced in new build and off plan work is strongly recommended. Off plan contracts can be more complex than standard resale purchases, particularly around long stop dates, stage payments, variation clauses, snagging provisions and insolvency protections. A specialist will know which clauses are normal and which are overly one sided, will insist on proper deposit protection, and will check that planning, building regulations and warranty arrangements are in place. They will also be familiar with common issues around communal areas, management companies and service charge budgets. While it can be tempting to choose the cheapest conveyancer, the cost of poor advice on an off plan contract can be far greater than any saving. Ideally, you want a firm that is independent of the developer and not purely reliant on referrals from the sales team.

Off plan contracts contain extra clauses that need careful legal attention

Specialists are familiar with deposit protection, long stop dates and variation rights

They will scrutinise planning, building regulation sign off and warranties

Independent advice is safer than using a firm closely tied to the developer

Good legal support can prevent expensive problems later on