Paperwork: when the title deed ends up in your hands
With an old building, the title deed (kupcha) for the apartment usually already exists. The seller shows it, you check it against the state registry, the sale contract is signed at a notary, and after registration the title deed passes into your name. This route has worked the same way for years, and every step can be predicted in advance.
With a new building, everything depends on what stage the building is at. A building that has not been commissioned has no separate title deed for the apartment. You sign a contract with the developer, pay, and wait. You get the title deed only after the building is commissioned and the apartments are registered in the state registry. That sometimes takes longer than promised.
So the first difference is where the paperwork risk lies. With an old building, the risk is in the seller and the apartment’s past. With a new building, it depends on the developer’s documents for the land, the permits, and how well the developer keeps its word.
- Old building: check the title deed against the registry and see whether the apartment is pledged or under attachment
- Old building: find out who is registered at the apartment and whether there are co-owners
- New building: ask for the land documents and the construction permit
- New building: find out whether the building has been commissioned
- New building: check whether the contract states when and how the title deed will be issued
Construction and layout
By an old building we mostly mean Soviet-era buildings. The walls are stone or panel and sturdy, the ceilings are low, the kitchen is small, and many blocks have no elevator. Load-bearing walls cannot be touched, so the layout stays as it is and reshaping the apartment is hard. On the other hand, thick walls hold sound and heat better than many new buildings.
A new building has high ceilings, a big kitchen, an elevator, underground parking and a shared courtyard. In a frame building the interior walls are not load-bearing, so the layout is easy to change. But quality varies a lot from one developer to another. In the same neighborhood one building stands for years without problems, while another gets cracked walls or a crumbling facade from the first winter.
If you are looking at a new building, visit the developer’s earlier buildings and talk to the residents. In an old building, the condition of the roof, basement, front door and stairs shows how well it is looked after.
- Old building: thick walls, a layout that cannot change, often no elevator
- New building: high ceilings, a layout you can change, elevator and parking
- In both cases: look at the floor, what the windows face and how close the neighboring buildings are
Renovation costs: what to add to the price
A new building is often sold unrenovated: bare walls, a concrete floor, no doors or plumbing. So the price in the listing looks low, but a full renovation from scratch is a big separate cost and takes time. Compare not the listing prices but the price plus the cost of renovation.
In an old building the apartment is usually renovated, so you can move in and live there. But “renovated” often just means finishing: paint, wallpaper, flooring. The old pipes, wiring, windows and radiators may not have been replaced, and after some time those are separate expenses.
So when you look at a renovated apartment in an old building, pay attention not to what the eye sees but to what is hidden: what the water pipes are made of, what the electrical panel is like, what shape the window frames are in. With a new building, work out the renovation budget in advance and add a reserve. In an empty apartment the costs usually come out higher than planned.
Utilities, maintenance and neighborhood
In an old building, gas, water and electricity are usually connected, the meters are installed, and everything works from day one. In a new building, even after commissioning, connecting some lines, gas in particular, can take time. Ask about this directly before buying. New complexes also have a monthly maintenance fee for the elevator, security, courtyard and parking. An old building either has no such fee or a very small one.
The neighborhood matters a lot too. In an established district the metro, school, kindergarten, market and clinic are already in place, and roads and transport are sorted out. New complexes are often built on the edge of the city. In the first years the school may not be open yet, the road not paved, and shops few. In a few years the place settles in, but you will be the one living there during those years.
- New building: ask whether gas is connected and what the maintenance fee includes
- Old building: look at the roof, the basement and the building’s shared pipes
- In both cases: drive the route you will take every day to work, to the metro and to school
Mortgage and resale
When a bank issues a mortgage, it takes the apartment as collateral and usually requires an apartment with a title deed. So a mortgage is easier to get on an old-building apartment that has one. The bank also looks at the year of construction and the condition of the building, and may refuse a very old or dilapidated one. For a new building without a title deed, a mortgage, if given at all, usually goes to projects the bank has approved and follows a scheme with a notarized contract and a security entry; some banks do not offer such a loan at all. Each bank sets these terms itself, so check the specific building with the bank in advance.
There is also a difference when you need to sell. Demand for an old apartment near the metro is steady, so finding a buyer is easier. In a new complex dozens of similar apartments are on sale at the same time, and you compete with your own neighbors. As the complex fills up, that competition eases. If you may have to sell in the first years, keep this in mind.
Today’s prices are better read in live statistics than in text. Median prices by district and building type are on a separate page of the site, calculated from the listings on the site.
Which option suits whom
There is no answer for everyone, but there is an answer for your situation. If you are in no hurry to move, want to renovate to your own taste and are not put off by a monthly maintenance fee, a new building gives you more options. If you want to move in right after getting the keys, send your child to the nearest school and get a mortgage more easily, an old building may suit you better.
If you are buying to rent out, the calculation is different. An apartment near the metro in an established district finds a tenant quickly. In a new complex the rent may be higher, but there is also a risk that the apartment will sit empty. Whatever you choose, compare listings by the same criteria and do not decide at first sight.
- New building: you have time, you want to renovate yourself, you like living in a gated complex
- Old building: get the keys and move in the same day, an established district, an easier mortgage
- For renting out: closeness to the metro matters more than the type of building