New Build or Older Property in Zagreb
A comparison of price, entry and maintenance costs, location, earthquakes and resale value.
Buyers in Zagreb very often choose between two options for similar money: a smaller floor area in a new build on the edge of a district, or a larger but unrenovated older property closer to the centre. Neither answer is universally right, because it depends on how much you are willing to invest in renovation, how important location is to you and whether you plan to resell the property quickly or stay in it for a long time. This guide by Hermes Nekretnine, based at Vlaška ulica 45 in Zagreb, compares new builds and older properties on every important point.
In the same district a new build generally achieves a price per square metre that is twenty to forty per cent higher than a comparable older property. For that difference the buyer gets a move-in-ready property with no immediately visible costs, better insulation and most often a lift and a parking space. A lower price per square metre for an older property often also means a larger floor area for the same budget, but with an obligation to invest that needs to be realistically assessed before buying.
With a new build from a VAT-registered developer, the tax is included in the price, but the cost of fitting out follows: the kitchen, flooring, lighting and built-in units for an average apartment easily reach several tens of thousands of euros. With an older property you pay transfer tax of three per cent, and then, depending on the condition, the renovation of services, joinery, the bathroom and flooring. The sum of the price and all these investments is only the real price of a move-in-ready property, and it is at that level that new builds and older properties should be compared.
A new build with good insulation and a modern heating system brings lower bills and, in the first years, few unforeseen costs. Older stock, especially buildings without a renovated facade and with original joinery, has higher heating costs and more frequent large shared works such as roof or facade repair, paid through an increased reserve fund. The energy rating, which we cover more in the guide Energy certificate in Zagreb, is a good quick reference for expected bills.
Older stock is concentrated in the most attractive, central parts of the city, in the Lower Town and the Upper Town, where there are practically no new buildings. New builds are constructed where there is vacant space or where old houses are demolished, that is on the edges of districts, along the Sava embankment in Trnje, in the eastern parts of the city and in Novi Zagreb. If a central location is your priority, the choice often comes down to older stock for renovation.
In Zagreb, parking is one of the biggest practical reasons buyers give up on older stock in the centre. Old buildings in the Lower Town and the Upper Town generally have no parking spaces of their own, so residents depend on paid zones and resident permits, with daily hunting for a space. A new build almost always comes with a garage or parking space, sometimes more than one, which alongside the value of the space also means a very different daily life. If you have a car and plan to keep it, it is worth putting this item high on the list of criteria.
The 2020 earthquake mostly affected old masonry construction in the city centre. When buying older stock in the Lower Town or the Upper Town we request information on the status of the building after the structural inspection and on planned renovation, because that directly affects future costs and safety. New builds and newer reinforced concrete construction proved considerably more resistant, so this question is less pronounced for them.
New builds carry different questions from older stock. If buying off plan, the developer's reputation and track record, the warranty terms, the construction schedule and the protection of paid funds all matter. Even with move-in-ready new builds it is worth checking the quality of the common parts, the waterproofing, the joinery and the sound insulation between apartments, because differences between individual projects in the same district can be large.
Older stock in the centre often offers high ceilings, thick walls, quality original details and a more spacious layout, which is hard to replicate in new construction. A new build, on the other hand, brings a more functional layout with no space lost to corridors, larger balconies and loggias, a storage room and a parking space within the building, and better sound and thermal insulation.
A move-in-ready new build in a good district resells quickly because buyers want a property with no work to do. Renovated older stock at a quality address is also very liquid, while unrenovated older stock attracts a narrower circle of buyers ready for a renovation, so it sells more slowly but with more room for negotiation.
If you choose older stock for renovation, alongside the housing loan for the purchase it is often possible to arrange an additional amount for the renovation, provided the bank accepts the cost estimate of the works. This spreads the total investment across one instalment, instead of financing the renovation from cash after moving in. Through mortgage brokerage we check which banks offer such a combination and on what terms for your situation.
Take a budget of 250,000 euros. In one option that is a move-in-ready two-room apartment of about fifty square metres in a new build on the edge of Trešnjevka or in Trnje, with parking and low bills. In the other option that is about seventy square metres of older stock closer to the centre but for renovation, where after an investment of another forty to sixty thousand euros you get a larger, more characterful space at a better address. The first option is simpler and faster, the second may have more long-term potential but demands time, money and tolerance of a building site. It is also worth noting that during the renovation of older stock, which can take several months, you usually also pay rent or an instalment for other accommodation, which is an additional hidden cost of the second option.
Per square metre it almost always is, but when the cost of renovation is added to older stock, the final price of a move-in-ready property often evens out.
If the location is decisive for you and you plan to stay a long time, often yes. The key is to assess the cost and duration of the renovation realistically in advance.
For a thorough renovation of services, joinery, the bathroom and flooring, count on roughly six hundred to one thousand euros per square metre, depending on the scope and standard.
The risk is greater with old masonry construction in the centre. Before buying we check the status of the building after the structural inspection and the renovation plans.
Yes, but the bank pays out the loan in tranches according to the progress of construction and requires additional security instruments, so borrowing capacity and a sound developer matter.
Yes, new builds are concentrated in developing districts and on the edges of the city, while in central districts construction is rare and mostly through demolishing existing buildings.
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