New-Build vs Resale Apartment in Poland — A Financial Comparison

New-Build vs Resale — The Eternal Dilemma

Anyone planning to buy an apartment in Poland faces a fundamental choice: purchase from a developer (primary market, rynek pierwotny) or from a previous owner (secondary market, rynek wtórny)? Both options have advantages and drawbacks, and the financial differences between them can amount to tens of thousands of zlotys. In this article we compare both markets in terms of costs, taxes, risks, and hidden expenses.

Purchase Costs — A Full Comparison

Price per Square Metre

New-build apartments are generally more expensive than comparable resale units, though the gap is narrowing:

Note: secondary market prices refer to apartments in good condition. Units requiring renovation can be significantly cheaper.

Taxes — The Key Difference

This is one of the most important financial aspects:

Primary market (from a developer):

• VAT: 8% (included in the price) for apartments up to 150 m²
• PCC: none
• The price you see in the developer's listing already includes VAT

Secondary market (from an individual):

• VAT: none
• PCC (tax on civil-law transactions): 2% of the property value (paid by the buyer)
• For an apartment priced at 700,000 PLN, that is an extra 14,000 PLN

Secondary market (from a company/flipper with VAT):

• VAT: 23% (usually included in the price)
• PCC: none (if the transaction is subject to VAT)

Notary Costs

The notary fee (taksa notarialna) is comparable for both markets and depends on the property value. The difference lies in the number of deeds:

Primary market:

• Developer agreement (notarial deed): 50% of the fee schedule
• Ownership transfer deed (second deed): 50% of the fee schedule
• Total: full fee + cost of certified copies

Secondary market:

• Preliminary agreement (can be in ordinary written form — cheaper but less secure)
• Sale agreement (notarial deed): full fee

Agent Commission

On the primary market, buyers usually pay no commission — the developer covers the sales office. On the secondary market, the commission is 2–3% and typically charged to the buyer (though it can sometimes be on the seller's side — worth negotiating).

Finishing and Renovation Costs

Primary Market — Developer State

A developer-state apartment typically means:

• Plastered walls (white plaster) or plasterboard
• Floor screed
• Installations brought to connection points (no outlets, no fixtures)
• Windows installed
• Front door installed
• No interior doors
• No flooring
• No bathroom (only plumbing stubs)
• No kitchen

Turnkey finishing cost: 1,500–3,000 PLN/m²

For a 50 m² apartment: 75,000–150,000 PLN

Secondary Market — Various Conditions

Resale apartments come in different states:

Move-in ready (good condition):

• Cost: 0–20,000 PLN (minor refresh, painting)
• You can move in immediately

Needs refreshing (average condition):

• Cost: 15,000–40,000 PLN
• Painting, floor replacement, minor repairs

Needs renovation (poor condition):

• Cost: 40,000–100,000 PLN
• Installation replacement, new bathroom, kitchen

Needs full gut renovation:

• Cost: 80,000–150,000+ PLN
• Practically finishing from scratch, plus demolition costs

Total Cost Comparison

Example for a 50 m² apartment in Kraków:

In this example the secondary market is cheaper by nearly 150,000 PLN. But that does not mean it is always the case — everything depends on the specific apartment.

Transaction Safety

Primary Market — The Developer Act

Since 2022 a new Developer Act (Ustawa deweloperska) has significantly increased buyer protection:

• Developer Guarantee Fund (DFG): a developer contribution protecting buyer funds in case of bankruptcy
• Escrow account (mieszkaniowy rachunek powierniczy): buyer money goes to a special account; the developer receives it in stages (open escrow) or only after ownership transfer (closed escrow)
• Information prospectus: a mandatory document with detailed information about the investment
• Developer agreement as a notarial deed: with a claim entered in the land register (księga wieczysta)

Risks despite protections:

• Construction delays (sometimes many months)
• Differences between the visualisation and reality
• Defects (though the developer must fix them under warranty)
• Noise from adjacent construction phases

Secondary Market — What to Watch Out For

Protections:

• Land register (księga wieczysta) — you verify the legal status of the property
• Notarial deed — the legal form guarantees transaction validity

Risks:

• Hidden physical defects: damp, mould, leaky installations, insulation problems
• Hidden legal defects: heir claims, mortgage encumbrances, easements
• Dishonest seller information: concealing defects is unfortunately common
• Tenants with eviction protection: in extreme cases you buy an apartment with unwanted occupants

How to protect yourself:

• Thoroughly check the land register (all sections)
• Request a certificate of no registered residents
• Commission a technical inspection (building inspector)
• Check the local zoning plan for the area

Location — The Secondary Market Advantage

The secondary market offers apartments in locations where developers no longer build:

• City centres: older buildings, but excellent transport links
• Established neighbourhoods: with developed infrastructure (schools, shops, parks)
• Along metro lines: in Warsaw, metro stations raise property values by 10–20%

The primary market often means:

• City outskirts: new estates, but far from the centre
• Areas still under construction: mud, no pavements, no shops for the first few years
• Large developer estates: dense construction, limited open space

Investment Value

Primary Market

• Initial depreciation: a new apartment loses value in the first 2–3 years (the "driven off the lot" effect)
• Long-term appreciation: after several years, as the area develops, value rises
• Lower maintenance costs: a newer building = lower heating bills, fewer breakdowns

Secondary Market

• Stable value: the market price is already "priced in"
• Post-renovation potential: a well-renovated resale apartment can gain 15–30% in value
• Premium location: apartments in the best locations appreciate faster

Time — An Important Factor

Primary Market

• From signing to handover: 12–36 months (depending on the construction stage)
• Finishing: an additional 2–5 months
• Total: up to 3–4 years from decision to move-in

During this time you need somewhere to live — if you are renting, that is an extra 2,000–4,000 PLN per month.

Secondary Market

• From signing to handover: 1–3 months (mortgage and notarial formalities)
• Renovation/refresh: 0–4 months
• Total: 1–6 months from decision to move-in

Warranty and Defect Claims

Primary Market

• Developer warranty: usually 3–5 years for building defects
• Statutory warranty (rękojmia): 5 years from handover
• Technical acceptance: you can report defects; the developer must fix them
• It is worth hiring an inspector for the acceptance (cost: 500–1,500 PLN)

Secondary Market

• Statutory warranty (rękojmia): 5 years, but only for defects the seller knew about and concealed
• No warranty: you buy "as is"
• This is why a thorough pre-purchase inspection is critical

Who Should Choose Which Market?

Choose the primary market if:

• You are not in a rush to move in
• You have a budget for finishing
• You want a new, energy-efficient building
• You want to design the apartment from scratch
• You value the developer warranty

Choose the secondary market if:

• You need an apartment quickly
• You want a specific location (city centre, near the metro)
• You prefer to see the finished apartment before buying
• You have a limited budget (less to spend on finishing)
• You can negotiate on price (the secondary market offers more room for negotiation)

Summary

There is no definitive answer as to which market is "better." It all depends on your financial situation, needs, and priorities. The key is to calculate ALL costs accurately — not just the price per square metre, but also taxes, finishing, commissions, and ongoing maintenance.

Financial planning tools like Freenance can help you compile all costs and determine which option better fits your budget. Because ultimately, the best apartment is one you can afford — not just to buy, but to maintain comfortably for years to come.