New Build vs Resale: Choosing the Right Property Type

Published on 20th June, 2025

The Allure of the New: Advantages of New Builds

Buying a new build property, whether off-plan or recently completed, offers several distinct benefits:

1. Modern Design & Amenities: New builds typically feature contemporary layouts, open-plan living spaces, and the latest fixtures and fittings. They often incorporate modern amenities like underfloor heating, air conditioning, high-speed internet infrastructure, communal pools, gyms, or underground parking, which might be lacking in older properties.

2. Energy Efficiency: Constructed to meet current building regulations, new homes generally boast superior energy efficiency (better insulation, double glazing, modern heating/cooling systems). This translates to lower utility bills and a smaller environmental footprint, reflected in better Energy Performance Certificate (EPC) ratings.

3. Builder Guarantees: New properties in Portugal come with mandatory builder guarantees, typically covering structural defects for five years and other finishing elements for a shorter period. This provides peace of mind against initial construction issues.

4. Potential for Customisation (Off-Plan): Buying off-plan (before construction is complete) often allows buyers to choose finishes like tiles, kitchen units, or paint colours, personalising the space from the outset.

5. Lower Initial Maintenance: With everything being new, buyers can expect minimal repair and maintenance costs in the first few years compared to older homes.

6. Potentially Easier Financing: Some banks may find financing new builds slightly more straightforward, although standard lending criteria always apply.

The Charm of Character: Advantages of Resale Properties

Existing or resale properties hold their own unique appeal and practical advantages:

1. Established Locations & Character: Resale properties are often situated in mature, established neighbourhoods with developed infrastructure, unique character, and proximity to traditional amenities. They might possess architectural features, charm, or historical significance absent in new developments.

2. Potential for Lower Purchase Price: Generally, resale properties (especially those requiring renovation) can be purchased at a lower price per square metre compared to equivalent new builds in the same area, offering a more accessible entry point.

3. Faster Move-In: The purchase process for a resale property is often quicker than waiting for an off-plan build to complete. You can typically move in shortly after the final deed is signed.

4. What You See Is What You Get: Unlike off-plan purchases based on plans and renders, with a resale property, you can physically inspect the exact unit, assess its condition, light, views, and the surrounding environment before committing.

5. Renovation Potential & Value-Add: Older properties offer the opportunity to renovate and add value, customising the space to your exact taste while potentially increasing its market worth significantly.

6. Mature Gardens & Landscapes: Resale homes often come with established gardens, mature trees, and landscaping, which can take years and significant cost to replicate in a new build.

Considerations and Drawbacks: New Builds

Despite the advantages, new builds have potential downsides:

• Price Premium: New properties generally command a higher price per square metre.

• Potential Delays (Off-Plan): Construction timelines for off-plan properties can face delays due to weather, supply issues, or bureaucracy.

• Less Established Locations: New developments might be located further from central amenities or in areas still under construction, lacking the immediate charm or convenience of older neighbourhoods.

• Snagging Issues: Even new homes can have minor defects ('snagging') that need addressing by the builder after completion.

• Smaller Room Sizes/Plots: Some modern developments may feature smaller room dimensions or plot sizes compared to older properties.

Considerations and Drawbacks: Resale Properties

Resale properties also come with potential challenges:

• Renovation Costs & Surprises: Older properties often require renovation or modernisation, which can be costly and potentially uncover unforeseen issues (e.g., plumbing, electrical, structural).

• Lower Energy Efficiency: Unless recently upgraded, resale homes typically have poorer energy efficiency, leading to higher utility bills.

• Hidden Defects: Older properties may have hidden defects not immediately apparent during viewings, making thorough surveys crucial.

• Outdated Layouts: Some older homes might have less desirable layouts (e.g., smaller kitchens, fewer bathrooms) compared to modern designs.

• No Builder Guarantees: You buy the property 'as seen' (subject to legal due diligence), without the builder warranties offered on new builds.

Making the Right Choice for You

The decision between new build and resale hinges on personal priorities, budget, risk tolerance, and lifestyle needs.

• Choose New Build if: You prioritise modern amenities, energy efficiency, low initial maintenance, potential customisation (off-plan), and are comfortable with potentially higher prices and less established locations.

• Choose Resale if: You value character, established locations, potentially lower purchase prices, the opportunity to renovate and add value, and prefer seeing the exact property before buying, while being prepared for potential renovation costs and lower energy efficiency.

Consulting with experienced real estate professionals, like the team at Berkshire Hathaway HomeServices Portugal Property found via PortugalProperty.com, can provide valuable insights into the specific pros and cons within your desired locations.

Conclusion

Both new builds and resale properties offer compelling advantages in Portugal. Weighing modern convenience against established character, and potential costs versus initial savings, is key. What matters more: turnkey living or renovation potential?

For more information, contact us at info@portugalproperty.com

Published in: Money / Portugal Property / Property