Deciding to buy a property is one of life’s biggest financial decisions. The first question is: new build or existing property? Both options offer opportunities as well as challenges. The German Property Federation IVD, Federal Association of Property Consultants, Estate Agents, Managers and Valuers (IVD), examines the most important aspects and offers specific tips for making a well-founded purchase decision.
New build: modern and energy-efficient, but often more expensive and time-consuming
A new build offers energy efficiency, modern layouts and the latest technology. Individual design preferences are also often easier to implement. However, new buildings are frequently constructed in newly developed locations where infrastructure is still emerging. Construction costs, increased material prices and longer completion times can also stretch budgets and patience.
Recommendation: compare, inspect and obtain expert advice
The IVD recommends comparing offers carefully, having building contracts reviewed by a lawyer and allowing for possible delays. Funding programmes, for example for climate-friendly new construction, can make financing easier. It is often also worth checking whether funding programmes are available at state or local level. An experienced estate agent knows comparable developments and can assess realistically whether the price and location fit the market. Involving a surveyor is advisable for detailed technical questions and an independent assessment of construction quality.
Existing property: quickly ready to occupy in an established area, but often in need of renovation
A previously occupied property is generally available more quickly and is often located in an established residential area with a mature neighbourhood and infrastructure. At the same time, it may require more refurbishment and modernisation, particularly to improve its energy performance. The type, age and condition of the heating system and the building envelope are especially important to check. Common property in blocks of flats should also be examined closely, from the level of maintenance reserves to the condition of the building services.
Recommendation: consult estate agents and surveyors
Obtain an independent building inspection before buying. Check the energy performance certificate, modernisation requirements and possible funding. Estate agents can help assess the purchase price and provide access to vetted properties offered at market prices. Surveyors can provide a professional valuation and assess possible defects.
Other decision criteria: budget, future plans and use
Beyond the differences between new and existing properties, prospective buyers should also consider their long-term prospects. The crucial question is whether the property fits their plans for life, for example in relation to starting a family, changes in employment or accessibility in old age. Intended use is equally important: rental yield, ease of letting and tax considerations are priorities for investors, while owner-occupiers focus primarily on quality of life and personal needs. The available budget must also be calculated realistically, including ancillary costs, reserves and possible modernisation.
“Whether new build or existing property, the crucial point is that the property should suit the buyer’s own goals and resources. Qualified estate agents and surveyors provide support through market knowledge, technical expertise and personalised advice. Those who obtain professional support at an early stage make a well-founded decision and create a reliable basis for an important life choice,” says IVD spokesperson Stephen Paul.
Planning permissions: upward trend for detached houses
According to the Federal Statistical Office (Destatis), a total of 15,200 homes were approved in new residential buildings in June 2025. This was 9.5 per cent or 1,300 homes more than in the same month of the previous year. Across the first half of 2025, 4.3 per cent or 3,700 more new homes in residential buildings were approved than in the same period of the previous year. Planning permissions for detached houses rose by 14.1 per cent (+2,600) to 21,300.