New properties come with lower acquisition costs, better insulation, modern amenities, and strong construction warranties ideal if you want peace of mind and predictable expenses. Existing homes remain highly attractive too: they’re often better located, full of character, and offer opportunities to negotiate the price and create value through renovation. With available aid and energy-improvement loans, upgrading an existing property has never been more accessible.
The real question isn’t “new or old?” It’s which option matches your financial capacity, your timeline, and your long-term goals (main residence vs. investment).
Want a personalized assessment of your real estate strategy? Reach out for a consultation at vipproperty.com
According to Article 257 of the General Tax Code, a “new property” is defined as a building that has been completed for less than five years. On the other hand, if more than five years have passed since the construction of a property or if it has already been subject to a transfer of ownership, it is considered an “existing (old) property.” Buying a new property, like buying an old one, comes with its own advantages and disadvantages. The right choice primarily depends on your profile (for example, first-time buyer, investor, etc.), your financial capacity, your personal tastes, and your planned moving date.
In this article, we have brought together all the key information to help you decide between a new property and an existing one.
Sales Price and Acquisition Costs
First of all, the selling price of an existing (old) property is generally lower than that of a new home. On average, the price per square meter in existing homes is 20% to 30% cheaper than in new buildings. However, in some cities where housing demand is very high, the prices of old properties can be almost the same as those of new ones.
In addition, notary fees must also be taken into account. For very old properties, these acquisition costs are generally around 7–8% of the sale price, while for new homes they are only 2–3%. For example, for a property worth €250,000, notary fees will be approximately between €17,500 and €20,000 for an old property, and between €5,000 and €7,500 for a new property. This represents a significant difference of €10,000 to €15,000.
Comfort and Interior Layout
An old property comes with traces of the past and a unique character. Exposed wooden beams, period stones, marble fireplaces… All these authentic details give old homes an atmosphere that is often not found in new constructions. On the other hand, new homes generally include comfort features that are rarer in older buildings: large elevators, underground parking, large windows, balconies, terraces, etc.
Although old properties are generally more affordable, after purchase they often require renovation costs. Sometimes this is limited to repainting a few rooms, but in other cases more extensive work may be required, such as renewing the electrical installation, strengthening insulation, or modernizing the heating system. Therefore, before purchasing, it is essential to obtain a detailed cost estimate from a professional for the possible renovation work.
Nevertheless, whether you build a new home or purchase a property that requires renovation, both options allow you to enjoy the freedom of shaping your living space entirely according to your own tastes. The construction or rehabilitation process enables you to transform each room into a comfortable and functional living area tailored to your needs.
When you work with Kyka, we stand by you at every stage of your real estate purchase. After the sale is completed, our interior design studio takes over and offers turnkey renovation solutions for your new home.
Energy Performance
New homes are mostly built in compliance with the latest environmental and energy standards. Generally equipped with an A or B-rated DPE (energy performance certificate), these buildings significantly reduce household energy expenses thanks to effective thermal and sound insulation. At a time when energy prices are rising rapidly and new environmental regulations aim to reduce carbon footprints, this is a major advantage. However, it should not be forgotten that not every new home necessarily has perfect energy performance.
Improving the DPE rating of an existing property can be a highly profitable investment. As regulations become increasingly strict, some property owners choose to sell quickly because they cannot afford the necessary renovation costs.
This creates the following opportunities for buyers:
— The ability to negotiate the selling price of apartments or houses that require renovation,
— The ability to quickly increase the market value of the property through renovation work.
In recent years, the real estate market has gone through a serious crisis. However, many positive indicators show that the market is gradually recovering. The year 2025 may represent a strong opportunity for investors, as supply still exceeds demand.
Location
Whether you are buying a primary residence or making a rental investment, location is always a key criterion. Do you want to live close to the city center with easy access to shops and public transport? In this case, the existing (old) property market is far more advantageous, as such properties are generally centrally located. New buildings, on the other hand, are often located on the outskirts of cities due to the availability of buildable land.
Service Charges and Maintenance Costs
Buying a new property means choosing peace of mind. In such a home, you do not need to spend your weekends fixing small issues or planning major renovations in the near future. New homes generally offer a long period without “major expenses,” which is a significant advantage for buyers who wish to avoid unpleasant surprises.
On the other hand, the older a property is, the greater the likelihood of short- or medium-term maintenance and renovation needs. For this reason, asking the right questions when visiting an apartment or a house is vital to anticipate potential future costs.
When you buy a property “as is,” you accept the wear and tear that has occurred over time, and you generally have no legal recourse against the seller for hidden defects discovered after the sale is completed.
Choosing a new home, however, allows you to benefit from a series of legal guarantees that protect you against construction defects. In off-plan purchases (VEFA), these guarantees include:
— Perfect completion guarantee: Covers defects and non-conformities detected within the first year.
— Two-year guarantee: Covers the proper functioning of equipment such as doors, windows, and shutters.
— Ten-year guarantee: Covers structural issues such as foundations and waterproofing.
— Construction damage insurance: Covers defects that affect the structural integrity of the building, such as wall cracks or floor subsidence.
When you buy an apartment, you become part of a condominium. Therefore, it is essential to be informed in advance about regular service charges, common area maintenance, elevators, parking expenses, and any future works planned.
Waiting Periods Before Moving In
Buying a new home off-plan generally requires patience. Depending on the construction process and the region, delivery can take between 1 and 2 years. After signing the reservation contract, you typically have to wait around 12 to 18 months. Delays are also common: on average, one out of three buyers experiences a delivery delay of about 5 months.
By contrast, purchasing an existing (new or old) property allows you to become a homeowner within a few months. On average, the process is completed within 3 to 4 months after signing the sales agreement. This is a major advantage for buyers who want to move in quickly or start renting immediately.
However, if you plan to carry out renovation work right after the purchase, the moving-in date may still be delayed by several months.
Real Estate Investment Incentives
Property tax exemption:
When you invest in a newly built home, you may benefit from a partial exemption from property tax (excluding waste collection tax) for the first two years following the completion of your home. This advantage starts from January 1 following the completion of construction.
Some municipalities reserve the right to limit or completely abolish this exemption. Depending on local budget policies, the exemption may vary.
The purchase of an existing property generally does not allow you to benefit from this exemption. However, there is one exception: for homes completed before January 1, 1989, if you carry out energy efficiency improvement works exceeding €10,000 including VAT, you may benefit from a partial property tax exemption of 50% to 100% for three years. These works must be carried out by RGE-certified professionals.
Support for Purchasing a New or Existing Property
The purchase of a new or existing home provides access to various state and local authority incentives that reduce the total cost of investment. These aids are often subject to income conditions.
One of the most important of these is the interest-free home loan (PTZ), intended for first-time buyers. This loan can finance up to 40% of the purchase cost of a primary residence.
In urban renewal areas, a reduced VAT rate of 5.5% may apply to new homes (normally 20%), creating a significant financial advantage.
In terms of tax benefits, the Pinel scheme is a key incentive for rental investors. Its duration has been extended under the 2025 budget. In addition, the Super Pinel (Pinel+), in force since 2023, offers higher income tax reductions.
Conditions for benefiting from Super Pinel:
— The property must be located in high-demand areas such as zones A, A bis, or B1,
— It must be rented within 12 months after the completion of construction,
— The rental period must be 6, 9, or 12 years,
— Tenants must comply with income ceilings,
— The tax reduction base is capped at €300,000 per year and €5,500 per square meter.
Aid for Renovation of Existing Properties
Various renovation grants are available for those investing in old properties. In addition, an eco-PTZ (interest-free ecological loan) can be used to improve the energy performance of a primary residence. This loan is available without income conditions and covers works such as insulation, efficient heating systems, and hot water production systems.
To reduce renovation costs, reduced VAT rates also apply:
— 5.5% VAT for energy improvement works in homes over 2 years old,
— 10% VAT for other improvement works, excluding reconstruction and extension projects.
Conclusion
The decision to buy a new or an existing property should primarily be based on your criteria, your profile, and your financial capacity. As long as the initial price is correctly assessed and the development potential of the neighborhood is taken into account, it is possible to make a successful real estate investment in both cases.
Would you like a personalized evaluation of your real estate investment strategy?
You can contact us at vipproperty.com to receive professional consulting.
FAQ – Frequently Asked Questions
Can I receive financial aid for both new and existing properties?
Yes. For new properties, you can benefit from PTZ, tax exemptions, and investment schemes like Pinel. For existing properties, eco-PTZ and renovation grants are available.
Are notary fees always lower for new homes?
Generally yes: around 2–3% for new homes and 7–8% for old homes.
If I buy a very old property, will renovation costs ruin the investment?
It depends. If energy renovation is required:
— Get detailed inspections and quotes before buying,
— Check your eligibility for renovation grants,
— Use the estimated renovation costs in price negotiations.
Is there a guarantee against construction defects in new buildings?
Yes. Perfect completion, two-year, and ten-year guarantees, as well as mandatory construction damage insurance, apply.
How long does it take to move into a new construction?
For off-plan purchases, it typically takes 12–18 months, and up to 24 months depending on the project.
Resources
OECD – Housing Market Analysis:
Provides macro-level insights on price dynamics, housing affordability, and the impact of energy standards on housing markets.
https://www.oecd.org/housing/
RICS – Royal Institution of Chartered Surveyors:
“Buying New-Build vs. Existing Property”
Provides professional guidance on assessing risks, warranties, and valuation differences.
https://www.rics.org
Investopedia – “Buying a Newly Built Home vs. an Existing Home”
Provides a clear and comparative analysis of costs, timelines, and construction guarantees.
https://www.investopedia.com
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