Buying Off-Plan: Risks and Rewards

Buying off-plan — purchasing a home before construction is complete — can offer a significant price advantage and flexible payments in the right project. But it also carries risks until handover. In this article we look at the advantages and risks of buying off-plan in Greece, Portugal and Türkiye, and how to protect yourself.

Why buy off-plan?

• Launch prices: prices usually rise as a project progresses. Early buyers may see 10–25% growth by completion; this varies with the market and is not guaranteed.
• Payment plan: instead of paying in full, you pay in instalments spread over the construction period.
• First choice: units with the best views, floors and orientation sell first.
• New, efficient building: current seismic, insulation and energy standards and low maintenance in the early years.
• Customisation: some projects let you choose finishes and layouts.

Key risks

• Delays: permits, financing or supply problems can delay handover.
• Developer's finances: the developer failing to complete is the most serious risk.
• Design changes: differences from what was promised in size, finishes or communal areas.
• Market risk: the value on completion may be lower than expected.
• Residency timing: for programs like the Golden Visa, when you can apply differs by country.

How to protect yourself

1. Research the developer

Visit completed projects, check delivery times and talk to existing owners. Ask your lawyer to review company registry and debt records.

2. Verify permits and land status

Has the building permit been issued? Whose name is the land registered in? Are there mortgages? Paying into projects without permits is high-risk.

3. Tie payments to construction milestones

Linking payments to concrete stages such as structure, roof, finishes and handover prevents you from committing too much money in case of delays. Where possible, pay a significant share on handover and title transfer.

4. Sign a strong contract

The contract should clearly state the delivery date, delay penalties, size tolerance, specification list, and cancellation and refund terms. Registering the contract at the land registry or notarising the promissory contract adds protection.

5. Ask for a bank guarantee or escrow account

Some developers offer bank guarantees or escrow accounts for deposits and instalments, protecting your money if the project is not completed.

Key differences by country

• Greece: Golden Visa applications generally require the title to be registered. Plan the timing of your application from the start when buying off-plan.
• Portugal: a deposit is paid under a promissory contract (CPCV). If either party withdraws there are legal consequences such as losing the deposit or repaying double. Notarising the contract is recommended.
• Türkiye: in projects with a condominium easement (kat irtifakı), a title for the unit can be issued during construction. Citizenship applications require a valuation report and a title annotation. Do not accept handover before the occupancy permit (iskân) is issued.

Pre-purchase checklist

1. Have the developer's track record and finances been reviewed?
2. Have the building permit and land title been verified?
3. Is the payment plan linked to construction milestones?
4. Are the delivery date and delay penalties in the contract?
5. Are the specification list and floor plan attached to the contract?
6. Is there a bank guarantee or escrow account?
7. Is the timing of your residency or citizenship application clear?

Conclusion

With the right developer and a robust contract, buying off-plan is a high-potential investment. At Kiyi Global we review projects with independent lawyers, monitor construction regularly and provide transparent reports. Browse our projects page or request a free eligibility assessment to see projects that suit you.

This article is for general information only and does not constitute legal advice.