Differences between the primary and secondary real estate markets.
When considering the purchase of a property, we face many choices. The first important one is whether we will buy an apartment from a developer or second-hand. In other words, we must decide whether we want to buy on the primary or secondary market.
Let’s compare both options!
Technical differences
Whether a property belongs to the primary or secondary market depends on whether it already has a Land and Mortgage Register.
On the primary market, apartments are built by a developer on a specific plot of land. Until the occupancy permit is issued, the apartment does not have a Land and Mortgage Register. When we buy such an apartment, we become the first owners listed in the register. On the secondary market, the property already has a Land and Mortgage Register, and by purchasing it, we become the next owner.
Primary market
When buying an apartment from a developer, we usually have the option to choose one that suits us in terms of layout, size, sunlight, and many other factors. We can select according to our needs and possibilities. This flexibility is undoubtedly an advantage.
The other side of buying from a developer is time. We often reserve an apartment or house a year or two before it is ready for occupancy and have to wait until we can finally move into our dream home.
Secondary market
On the secondary market, the time between finding a property and buying it is much shorter. We find a ready, furnished apartment or house. We buy a few additional things we need and can move in. If we want to act quickly, the secondary market is usually the better option.
On the other hand, we must accept that such a property, arranged by someone else, may not appeal to us as much as if we had designed it ourselves. Then again, not everyone dreams of decorating a property from scratch — in that sense, the secondary market can also be a simpler solution.
Which is better?
There’s no definite answer to that!
When choosing a property — whether on the primary or secondary market — we must consider whether the apartment or house we want to buy needs to be customized specifically for us, whether we’re willing to accept the finishing done by the previous owner, and whether we’re ready to wait longer for the property or prefer to move in right away.
