Is new construction always a better investment?

No. New construction can be a good investment if the price is realistic, location is good, the developer is reliable, and documentation is in order. Older construction in a good micro-location can be equally or more attractive if entry price is good and renovation fits the budget.

How much does renovating an old apartment cost?

It depends on scope of work, materials, installation condition, and location. Minor refresh can be much cheaper, while full adaptation with installations, bathroom, kitchen, floors, and joinery can cost several hundred euros per square metre or more.

Is VAT included in new construction price?

When buying from a developer check whether the price is shown with or without VAT, what the contract and invoice state, and whether the buyer is entitled to VAT refund for a first apartment.

What to check about the developer?

Check building permit, construction notification, completion deadline, occupancy permit if completed, subdivision status, references from previous projects, quality of completed works, and payment terms.

What to check with older construction?

Check property register extract, basis of acquisition, encumbrances, mortgage, installation condition, moisture, heating, lift, façade, roof, common costs, and estimated renovation budget.

New Build vs Older Construction: What to Choose

Buying4 min read

Last updated: 12 June 2026

A comparative analysis of buying in new construction and older buildings in Serbia — price, location, documentation, maintenance, renovation, VAT, and risks.

In short

The choice between new construction and older buildings depends on budget, location, apartment condition, documentation, renovation costs, and purchase goal. New construction often offers modern installations, energy efficiency, and less initial investment, but may be more expensive and carry delay risk if bought during construction. Older construction may offer a better micro-location and more square footage for the same budget, but requires detailed checks of installations, building, lift, façade, and adaptation costs.

Advantages of new construction

New construction often offers a more modern layout, new installations, better thermal insulation, lift, garage or parking, phased payment options, and less initial investment after move-in. When buying from a developer, especially verify documentation, deadlines, and what is exactly included in the price.

New installations and less need for immediate renovation after purchase
Better energy efficiency in well-built projects
Option to buy a garage or parking space
Phased payment option with some developers
Possible tax benefits for a first apartment if the buyer meets conditions

Risks with new construction

For new construction it is not enough to look only at project visuals and price per square metre. Verify the developer, building permit, construction notification, completion deadline, agreed penalties if any, occupancy permit if completed, subdivision, registration of separate units, and payment terms.

Delay in completion of works
Difference between render and finished condition
Unclear deadlines and penalties
Quality of finishes and materials
Occupancy permit, subdivision, and cadastre registration

Advantages of older construction

Older construction often has an advantage in well-developed neighbourhoods, proximity to the centre, schools, transport, markets, and amenities. The buyer can immediately see the actual building condition, neighbourhood, entrance, lift, heating, and maintenance. For some apartments the advantage is also better layout, larger rooms, or custom adaptation.

Risks with older construction

For older apartments it is most important to check installations, heating, windows, bathroom, kitchen, moisture, roof if top floor, lift, façade, and common building areas. Budget should include possible renovation, unplanned works, and time needed for adaptation.

VAT, tax, and first apartment

When buying new construction from a developer VAT is often relevant, while for resale transfer tax on absolute rights is most often checked. A first-time buyer may be entitled to tax exemption or VAT refund if they meet prescribed conditions. Before purchase verify what is included in the price and which tax regime applies.

How to decide

The best choice is not always new or always older construction. Compare total purchase price, taxes, notary, agency commission if any, renovation costs, maintenance, parking, move-in deadline, documentation, and potential for later sale or rental.

Criterion	New construction	Older construction
Price per m²	Often higher for quality new projects and sought-after zones	May be lower or higher depending on location, condition, and building
Location	Often new zones, larger complexes, or urban infill	Often developed neighbourhoods, centre, and older city areas
Maintenance	Less initial investment if construction is quality	Possible higher renovation and building maintenance costs
Documentation	Check permits, occupancy permit, subdivision, and developer	Check cadastre, basis of acquisition, encumbrances, and building condition
Risk	Delay, work quality, registration, and deadlines	Hidden defects, installations, moisture, lift, façade
Move-in	Immediate if completed; later if under construction	Often immediate, but with possible renovation

Frequently asked questions

LIVION Tim

Real estate agency, Serbia

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