Are you deciding between the charm of a period property and the efficiency of a new build? This decision has significant financial implications. We will show you how to objectively assess the advantages and disadvantages of new builds and period properties, helping you avoid costly mistakes.
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The topic briefly and concisely
Older buildings are often cheaper to purchase, but they carry risks due to high renovation and maintenance costs of up to €11.50/m² per year.
New buildings offer high energy efficiency and low operating costs thanks to modern standards, but they are more expensive to purchase and often located on smaller plots.
Government subsidies (KfW/BAFA) can significantly reduce the costs of an energy-efficient old building renovation and improve economic efficiency.
The decision between a new build and an old building is one of the most important choices for property owners and investors. It's about more than just taste. While new builds entice with modern technology and energy efficiency, older buildings often score with desirable locations and unique character. But which option is economically more sensible? This article provides you with a comprehensive analysis of the crucial factors – from acquisition and operating costs to value stability and legal requirements. This way, you can make a safe, data-driven decision for your assets.
The essentials at a glance: The main differences
The choice between old and new buildings impacts your finances for years. Here is an overview of the decisive considerations.
Costs: Older buildings are often cheaper to purchase but incur higher subsequent costs due to renovations. New builds have higher purchase prices but minimal maintenance costs for at least the first 5 to 10 years.
Energy Efficiency: New builds are constructed according to current, stringent regulations and therefore have low energy costs. Older buildings, especially those built before 1977, often require extensive renovations to meet legal requirements.
Maintenance: For older buildings, you should set aside 11.50 euros per square metre annually for maintenance, whereas for new builds, 7.10 euros is often sufficient.
Value Stability: The location is often an unbeatable advantage with older buildings, which ensures stable value development. For new builds, value development depends significantly on the future prospects of the location.
Individuality vs. Standard: New builds offer the possibility to influence floor plans and features from the outset. Older buildings often have predefined structures due to their substance but offer a historical charm that many buyers appreciate.
These factors show that there is no universally correct answer. Your personal situation and goals are crucial for further analysis.
Costs in Detail: Acquisition versus Ongoing Expenses
The initial purchase price is only half the story. The long-term cost burden varies significantly between new and older buildings. While older properties are often cheaper to buy, undiscovered defects can quickly drive up costs. For an older building over 32 years old, experts recommend a maintenance reserve of up to 11.50 euros per square metre per year. For a 120 sqm apartment, this amounts to 1,380 euros annually. In contrast, for new buildings less than 22 years old, only about 7.10 euros per square metre is recommended. Also consider the additional costs: new builds may incur higher property transfer taxes and development costs. A thorough property valuation is therefore essential to identify the actual costs in advance. The initially higher costs of a new building can be offset over the years by lower operating expenses.
Energy Efficiency and Mandatory Renovation: The GEG Factor
The energy state of a property has become a central value driver. Buildings are responsible for around 35 per cent of final energy consumption in Germany. New buildings are now routinely constructed according to the requirements of the Building Energy Act (GEG), which means low heating costs and predictability for you as the owner. A new build can have up to 60 per cent lower CO2 emissions per household. The situation is different for older buildings. Approximately 12 million of the roughly 19 million residential buildings in Germany were built before the first thermal insulation ordinance of 1977. There is often a legal obligation to upgrade these properties, for example, with roof insulation or heating system replacements. These investments are costly but often unavoidable and should be carefully calculated before purchase. However, an energy-efficient modernisation can be significantly facilitated by subsidies.
Make the most of funding opportunities
The state supports property owners in the energy improvement of real estate with significant amounts of funding. Particularly when renovating older buildings, you can benefit from attractive programmes. The Kreditanstalt für Wiederaufbau (KfW) offers low-interest loans and repayment grants for renovation measures. With the programme "Residential Buildings – Loan 261," you can receive up to 150,000 euros credit per residential unit, with the repayment grant amounting to up to 45% depending on the efficiency level achieved. For so-called "Worst Performing Buildings," there is even an additional bonus of 10 percentage points. The Federal Office for Economic Affairs and Export Control (BAFA) also subsidises individual measures such as heating replacement. For the climate-friendly house purchase, there are also special programmes that you should consider. Careful planning and the right combination of grants can reduce the financial burden of a renovation by tens of thousands of euros.
Performance and Location: Where Your Money Grows Safest
The long-term value development of your property is largely influenced by two factors: location and condition. Older buildings are often situated in established, central areas with developed infrastructure, which gives them high value stability. The index for existing houses has shown a continuous increase in value since 2009. New buildings are often constructed in new developments on the outskirts of cities, whose future attractiveness is harder to assess. However, new constructions in solid construction offer very good value growth. The energy condition is becoming increasingly important in pricing. An unrenovated property in a good location can lose value if the renovation costs exceed the potential selling price. With a professional valuation, you can accurately assess the potential of your property. This ensures that your investment still bears fruit in 20 years.
Conclusion: Make your decision based on a solid data foundation
The debate New build or old building and their advantages and disadvantages cannot be decided categorically. The new build is appealing due to its efficiency, low maintenance costs, and modern standards but requires a higher initial investment and often offers less land space. The old building scores with charm, established location, and a lower purchase price, but carries the risk of high and unpredictable renovation costs. Your decision should be based on a cool-headed calculation. Analyse your financial framework, risk tolerance, and long-term goals. Do you need a quick and objective assessment of the costs and potential of a specific property? The Auctoa ImmoGPT chat can provide you with initial data-driven answers here. For a detailed analysis and a well-informed purchasing decision, a professional valuation is essential. This is how you turn uncertainty into a secure investment.
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Additional useful links
The Statistical Federal Office provides comprehensive information on the property price index and construction prices.
Detailed tables on construction prices and the property price index can be found at the Statistical Federal Office.
The Statistical Federal Office provides specific data on house prices and building land.
Information on price indices, as important economic indicators, is available from the Statistical Federal Office.
Publications on price developments in the construction industry are available from the Statistical Federal Office.
Wikipedia offers an overview of the real estate market in Germany.
The Federal Environment Agency provides data on the energy consumption of buildings.
The Building Forum offers a knowledge database with figures and facts about buildings.
The German Energy Agency (dena) presents its building report 2025.
FAQ
From when is a house considered an old building?
There is no legally precise definition. In tenancy law, buildings constructed before 1949 are often considered as old buildings. Colloquially and architecturally, it often refers to buildings from the Gründerzeit up to the 1950s with typical features such as wooden beam ceilings and box windows.
What maintenance costs should I budget for a house?
As a rule of thumb, it's advisable to set aside at least 1 euro per square metre of living space per month. For older buildings (over 20 years), it should be more like 2 euros. The Peters formula assumes that within 80 years, maintenance will amount to 1.5 times the construction costs.
Is an energy-efficient renovation always worth it?
In most cases, yes. Not only do they reduce your heating costs by up to 80%, but they also increase the value and living comfort of your property. Thanks to government subsidies, you don't have to bear the costs alone, which significantly shortens the amortisation period.
Can I influence the design in a new build?
Yes, that is one of the major advantages. When buying from a developer, you often still have the chance to influence the layout, flooring, bathroom fittings, and other details during the planning phase. With an individually designed architect's house, you have complete freedom of design.
What role does the energy certificate play in the decision?
A very important one. The energy certificate provides you with a quick overview of a building's energy efficiency. For older buildings, it is often in the red or yellow range (over 100 kWh/m²a), while new buildings are in the green range (under 50 kWh/m²a). This has a direct impact on your future utility costs.
Where can I find the best grants for my property?
The key contact points are KfW (Kreditanstalt für Wiederaufbau) for loans and repayment grants, as well as BAFA (Federal Office for Economic Affairs and Export Control) for subsidies for individual measures. An energy consultation can help you find and combine the appropriate programs.
