The primary real estate market includes properties in new buildings that are sold for the first time and without previous owners. Transactions in such a market usually take place directly with the developer or through an authorized real estate agency.

Advantages of purchasing real estate on the primary market:

  • Modern construction technologies. Housing is built using the latest materials and approaches, including energy-efficient technologies.
  • Developer’s warranty. In Russia, for example, there is a mandatory warranty on housing for a period of 3 to 5 years.
  • Individual finishing. Buyers can choose housing with rough or pre-finished finishing and decorate it according to their taste.
  • Cost at the construction stage. Buying at the initial stage is often cheaper than on the secondary market or after construction is completed.
  • Escrow accounts. Buyers’ money is kept in a special account until construction is completed and is returned to customers by court order if the developer is found to be dishonest.

Disadvantages of buying real estate on the primary market:

  • Infrastructure problems. New areas often lack schools, shops, or transport access.
  • Waiting periods. Buyers of new buildings must wait until the construction is completed and the building is put into operation.
  • Dependence on the developer. Delays and changes in conditions may affect the delivery dates of the housing.