Primary or Secondary Property Market – Which Should You Choose When Buying Property in Poland?

Buying a new property directly from a developer gives you the opportunity to design and finish the interior from scratch. On the other hand, a property on the secondary market often allows you to move in sooner and find a home in a well-developed part of the city.

However, the differences are not limited to the property's condition. They also involve costs, formalities and the way the purchase is financed with a mortgage.

In this article, we explain how the two markets differ and what you should consider before making a decision.

What Is the Primary Market and What Is the Secondary Market?

The primary market includes properties sold directly by developers. These can be apartments or houses that are still under construction or have already been completed. Buyers usually receive the property in developer's standard condition (unfinished) and arrange the finishing work themselves.

The secondary market includes properties that have already had previous owners. They may be ready to move into, partially finished or in need of renovation.

The Main Differences Between the Primary and Secondary Markets

What Additional Costs Should You Consider?

The purchase price is not the only expense you need to plan for.

When buying on the primary market, you should mainly consider the costs of finishing the property, purchasing furniture and equipment, as well as any additional costs for a parking space or storage unit. The developer's price usually includes VAT, so buyers generally do not have to pay the additional PCC tax.

When buying on the secondary market, you should consider, among other things, the PCC tax, which is normally 2% of the property's value, notary fees, a possible estate agent's commission and renovation costs.

It is worth knowing that people buying their first apartment or house on the secondary market may qualify for a PCC tax exemption, provided they meet the legal requirements.

What Does the Buying Process Look Like on Each Market?

The formalities differ depending on who you are buying the property from.

On the primary market, the process usually involves choosing a development, reviewing the developer's documents, signing the development agreement, arranging financing, completing the technical inspection and signing the notarial deed transferring ownership.

On the secondary market, the first steps usually include choosing a property, checking its legal status and land and mortgage register, signing a preliminary agreement, obtaining financing and finally signing the sale agreement before a notary.

In both cases, it is important to check all the necessary documents in advance and plan the deadlines for each stage of the process.

Does Getting a Mortgage Differ Between the Primary and Secondary Markets?

You can obtain a mortgage both when buying a property from a developer and when purchasing one from a private seller. The main differences concern the documents required by the bank and the way the loan is disbursed.

When buying from a developer, the bank may require the development agreement, project documentation and payment schedule. The mortgage is often paid out in instalments, depending on the construction progress or the terms of the agreement.

When buying on the secondary market, the bank reviews documents such as the preliminary agreement, the land and mortgage register and documents relating to the seller. If the property is subject to an existing mortgage, the bank may also require a certificate confirming the outstanding loan balance. The mortgage is usually disbursed in one payment.

Specific requirements may vary depending on the bank and the individual transaction.

Primary or Secondary Market – Which Should You Choose?

There is no single answer to this question. It all depends on your budget, expectations, preferred location and planned moving date.

The primary market may be a good choice if you want a brand-new property and the freedom to design it according to your preferences. The secondary market may be a better option if you want to move in sooner or are looking for a property in a specific location.

Before making a decision, it is worth comparing not only property prices but also all additional costs and available financing options.

Planning to Buy Property in Poland? I Can Help You Find the Right Mortgage.

Whether you are planning to buy an apartment directly from a developer or a property on the secondary market, I can help you through the mortgage application process.

We will analyse your financial situation, assess your creditworthiness and compare bank offers to find a solution that suits your needs.

If you are a foreign national, I can also help you understand the banks' requirements regarding income and residence documents.

Get in touch to discuss your situation and explore the available financing options for buying property in Poland.