New-Build vs Older Property: What You Really Pay Over Time

The Comparison Scenario

Same size – same time horizon – different philosophy

Option A: Older Apartment

• Year of construction: 1975–1995

• Purchase price: €2,700 / sqm

• 80 sqm apartment → €216,000

• Renovation (full, structural – not cosmetic): €900 / sqm

• Renovation cost: €72,000

➡️ Total initial cost: €288,000

Option B: New-Build Apartment (Under Construction)

• Delivery: 18–24 months

• Purchase price: €4,700 / sqm

• 80 sqm apartment → €376,000

• Renovation: €0

➡️ Total cost: €376,000

👉 Nominal difference: €88,000 in favor of the older property.
But this is only the starting point.

Critical Factor #1: Staged Capital Deployment (Off-Plan)

With a new-build under construction:

• capital is not deployed all at once

• payments are spread over 18–24 months

Typical structure:

• 30% at contract signing

• 40% during construction progress

• 30% at delivery

This means:

• liquidity is preserved

• opportunity cost is reduced

• capital does not “freeze” from day one

With an older property:

• 100% of the purchase price is paid immediately

• renovation costs follow right away

• timelines and final costs often remain uncertain

This difference in capital timing is not a detail — it is a strategic factor.

Critical Factor #2: Building It Right from the Start (Not Fixing Old Mistakes)

In an older property

• you adapt to layouts designed 40–50 years ago

• you correct constraints in height, light, and structure

• compromises remain even after renovation

As explained in the article “The 7 Construction Mistakes That Cannot Be Fixed After Delivery”, many structural limitations of older buildings cannot truly be eliminated — they are simply postponed.

In a new-build

• you define the layout from the beginning

• electrical, plumbing, materials, and storage are planned properly

• the home is built correctly from day one

This is not luxury.
It is functional living for decades.

As shown in “Why the Right Floor Plan Is Worth More Than 20 Extra Square Meters”, daily functionality impacts quality of life far more than surface area.

Energy Cost & Thermal Losses (10-Year Horizon)

Older Property

• Energy class: E–G

• Significant thermal losses through walls, windows, roof

• Average annual energy cost: €2,200

• 10-year total: €22,000

New-Build

• Energy class: A / A+

• Minimal thermal losses

• Average annual energy cost: €650

• 10-year total: €6,500

➡️ New-build advantage: €15,500

As discussed in “The Rise of Energy-Efficient Homes: From Luxury to Necessity”, energy efficiency gaps do not shrink over time — they widen.

Maintenance & Unexpected Costs (10 Years)

Older Property

Even after renovation:

• aging building structure

• recurring common-area issues

• repeated interventions

Average cost: €1,800 / year
➡️ €18,000 over 10 years

New-Build

• new installations

• warranties

• fewer surprises

Average cost: €500 / year
➡️ €5,000 over 10 years

➡️ New-build advantage: €13,000

The Building Community Factor (Rarely Calculated, Always Paid)

There is a cost that does not appear in spreadsheets but directly affects:

• daily life

• maintenance discipline

• long-term value

In older buildings

You often encounter:

• long-term owners with uneven financial capacity

• tenants with limited long-term interest

• delayed or unpaid common expenses

• resistance to necessary maintenance

• gradual degradation of shared spaces

Even if you are consistent, the building operates at the level of its weakest link.

In new-build developments

Typically:

• new owners or young families

• recent capital commitment → higher care

• shared interest in preserving value

• higher consistency in common expenses

• problems are addressed early, not after years of neglect

Issues may still exist — but they do not become chronic.

Resale Reality After 10 Years

Older Property (55–60 years old)

• narrower buyer pool

• frequent need for another renovation

• price pressure

• longer selling period

New-Build (10 years old)

• still perceived as “modern”

• more attractive to buyers and tenants

• stronger value retention

• higher liquidity

As analyzed in “How to Recognize a Property That Will Age Well”, long-term value depends on how a property matures — not just how it looks at purchase.

10-Year Cost Summary

Initial Cost

Older: €288,000

New-build: €376,000

Energy (10 years)

Older: €22,000

New-build: €6,500

Maintenance (10 years)

Older: €18,000

New-build: €5,000

Total 10-Year Cost

Older: €328,000

New-build: €387,500

👉 10-year difference: ~€59,500 in favor of the older property,
but with:

• full capital deployment from day one

• higher operational friction

• more demanding daily reality

• lower long-term liquidity

The Role of Poli Real Estate

At Poli Real Estate, the comparison between new and old properties is never based on listing headlines.

It is based on:

• 10-year cost analysis

• capital deployment timing

• energy losses

• building functionality

• resident behavior and building dynamics

• real resale liquidity

Because the right property is not judged at signing.
It is judged over the years you own it.

Final Takeaway

• At €4,700 / sqm, new-builds are not cheap

• At €2,700 / sqm, older properties are not as economical as they appear

• The difference is not only financial — it is structural and daily

The right choice is not ideological.
It depends on:

• liquidity

• time horizon

• risk tolerance

• lifestyle

And none of that appears in a listing.

If you are considering selling your property, complete the form using the contact button below and Poli Real Estate will contact you with a free valuation.