New development or secondary market: which is the better choice today?

When buying an apartment, many people quickly reach one question: a new development or a secondary market apartment? Both options have their advantages and disadvantages, and there is no single right answer for everyone. The choice depends on your budget, location preference, lifestyle and what you value most when buying a home.

The price rises of recent years have made this question even more important, because the price gap between new developments and the secondary market has become significant. Let’s take a closer look at what to consider before deciding.

Price: the biggest difference between new developments and the secondary market

The two-room apartment example shows the difference even more clearly. The average price of a new two-room apartment in Tallinn (transactions with apartments of 40–55 m²): €216,414. The average price of a secondary market two-room apartment in Tallinn: €136,326.

That means a price difference of more than €80,000.

A new development offers new quality, but you pay a significantly higher price for it.

Advantages of a new development

It is no coincidence that new developments remain in high demand.

The main advantages are:

• energy efficiency;
• modern technical systems;
• lower utility costs;
• a warranty on construction work;
• modern layouts;
• less need for repairs in the coming years.

For many buyers it also matters to know that they probably won’t have to deal with major renovations in the next 10-15 years. New buildings also meet today’s energy requirements, which helps keep monthly costs under control.

Disadvantages of a new development

The purchase price of the apartment may not be the final amount you actually pay. In many new developments the parking space and storage room are sold separately from the apartment and can add tens of thousands of euros to the price. In some developments the parking space or storage room may be separate properties or paid extras, so always check what the advertised price actually includes before buying.

With a new development you also need to take into account:

• a higher purchase price;
• possibly higher management costs;
• more expensive parking spaces and storage rooms;
• often smaller rooms;
• extra costs for interior finishing and furnishing;
• a living environment that is still taking shape.

Higher quality usually also means a higher price. 

Advantages of a secondary market apartment

The biggest strength of the secondary market is often location and an established living environment.

Many older apartment buildings are in areas where:

• schools and kindergartens are close by;
• public transport is well developed;
• there are mature trees and greenery;
• services are within walking distance.

The main advantage of secondary market apartments is that for the same money you can get noticeably more square metres.

Disadvantages of the secondary market

With an older apartment, more attention must be paid to the technical condition.

It is worth checking:

• the electrical system;
• the plumbing;
• the ventilation;
• the financial position of the apartment association;
• planned renovation works.

Sometimes an initially cheaper purchase can turn out to be more expensive later if the building needs major investment in the coming years. Many buyers also fear hidden defects in the secondary market, which may not be noticed at the first viewing. The wish to avoid unpleasant surprises is one of the reasons why some buyers prefer new developments. However, that does not mean every secondary market apartment is a risky purchase. Proper groundwork, checking the documentation and a thorough inspection help uncover most potential problems before the purchase. 

That is why it pays to do thorough groundwork before buying and, if needed, involve a specialist.

New development or secondary market: location affects price more than people think 

Although new developments and the secondary market are often simply compared against each other, location actually plays a very big role.

For example, in the first quarter of 2026, according to the Land and Spatial Development Board, a new two-room apartment cost:

• in Pirita on average €321,256
• in the city centre on average €253,700
• in Haabersti on average €190,514
• in Mustamäe on average €194,921

For secondary market apartments the prices were noticeably lower:

• in the city centre on average €183,607
• in Lasnamäe on average €119,110
• in Mustamäe on average €120,525

These figures show clearly that the final decision is not determined only by whether the apartment is new or old. The district and its development potential matter a great deal too.

New development or secondary market: which holds its value better? 

This is a question buyers often ask.

In reality, how well a property holds its value depends more on:

• location
• the condition of the building
• the development of the area
• demand
• the market situation

A well-maintained secondary market apartment in a good area can hold its value just as well as a new development. At the same time, energy-efficient, high-quality new developments may be more attractive to buyers in the future.

Summary

If you value modern solutions, energy efficiency and less need for repairs, a new development may be the right choice for you. If you want more space for the same budget, an established living environment and a lower purchase price, the secondary market is definitely worth a look. What matters most is not whether it is a new development or the secondary market, but whether the specific property matches your needs and means.

If you are considering buying a home and want to assess different areas or compare new developments and secondary market offers, get in touch. I will help find the solution that best suits your goals, budget and future plans.