When deciding to purchase a property for investment purposes—whether for short-term rental, long-term lease, or resale with profit—one of the key questions is: should I buy a brand-new property or go for a previously owned (second-hand) apartment? Both options have their pros and cons, but in recent years, more and more investors are leaning toward new developments. Here are the main reasons why.
1. Higher Value Appreciation Over Time
In a well-chosen location, a new property can significantly increase in value within just a few years, especially if located in a growing area with strong development potential—new shopping centers, schools, beaches, infrastructure. Investors who buy during construction can achieve 15–25% value growth by the time the project is completed.
For second-hand properties, this potential is limited—value may grow more slowly and depends heavily on the market. If the property is in original condition without renovation, its value may stagnate or even decline.
2. Higher Energy Efficiency and Lower Monthly Costs
Most new projects are built with energy efficiency in mind — modern insulation, high-quality windows, energy-saving appliances and air conditioning, and often solar or aerothermal systems. This results in significantly lower utility bills, benefiting both the owner and the tenant. These benefits make new properties much more attractive on the rental market.
In contrast, older properties tend to have higher operating costs due to poor insulation, outdated systems, and energy-inefficient appliances.
3. Greater Appeal to Tenants
To generate passive income from rentals, you need to think like a tenant. Today’s tenants—especially foreigners—look for modern, bright, air-conditioned apartments with smart layouts, quality kitchens, spacious terraces, and parking. New developments are designed to meet exactly these expectations.
Older flats often lack such comfort—lower ceilings, smaller windows, dated interiors, no elevator, and poor parking. Renovation can help, but it’s rarely equivalent to a modern new build.
As a result, new properties rent faster and often at higher rates.
4. Safety and Lower Risk of Unexpected Costs
One of the biggest issues with older properties is the uncertainty of what comes after the purchase. A home might look fine at first glance, but hidden issues often appear within a few months—outdated wiring, plumbing problems, leaky windows, humidity, faulty air conditioning or heating. These repairs can be time-consuming and costly.
New developments eliminate most of these risks. Everything is brand-new and under warranty (typically 10 years for structural elements and 2 years for finishes and appliances), built with modern materials and technologies that meet today’s standards. This gives the investor greater peace of mind and fewer unexpected expenses.
5. Simplified Rental Process and Management
Many new developments offer a “turnkey solution”—fully furnished and ready-to-rent apartments. Some even partner with rental management companies, making the process much easier for foreign investors.
With second-hand units, you’ll have to handle everything yourself: renovation, furnishing, registration, and property management—requiring time, effort, and local knowledge.
6. Higher Buyer Demand in the Future
If you plan to resell the property, well-maintained new builds usually sell faster and at higher prices. Buyers prefer modern homes that need minimal repairs. In contrast, older properties often need to be discounted due to the renovation costs the new owner will incur.
7. Taxes, Legal Certainty, and Lower Risk
New builds come with VAT (e.g. 10% in Spain), while second-hand purchases are subject to property transfer tax (ITP), often at similar or higher rates. However, the key advantage lies in legal certainty. With a reputable developer, contracts are standardized, payments are guaranteed by banks, and insurance covers construction issues.
Second-hand purchases may involve legal complications—unclear ownership, existing mortgages, legal or technical irregularities. These risks can be minimized, but never completely eliminated.
Conclusion
While second-hand properties can be attractive in certain cases—particularly if they’re offered at a great price in a prime location—most investors today favor new developments. The reasons are clear: higher rental appeal, fewer risks, lower maintenance costs, greater comfort, and easier management. Additionally, new developments can provide capital appreciation even before the project is completed.
At the end of the day, the goal of any investment is peace of mind, predictability, and stable income—and a carefully chosen new build offers these advantages more reliably than an older property with an uncertain past.
