Two markets, two strategies. How to choose the better investment option?

Choosing between the primary and secondary markets is one of the most common decisions faced by investors planning to purchase real estate. Both options have their advantages, but they differ in terms of risk, initial costs, time to entry into the rental market and potential rate of return.

The primary market attracts investors who favour modern construction, higher standards and a lower risk of costly repairs in the first years of use. In many cases, an additional advantage is the possibility of purchasing a property at an earlier stage of the investment, which may mean a more favourable starting price. However, it should be remembered that some investments require time for completion and finishing, which may delay the start of the lease.

On the other hand, the secondary market can be attractive to investors who want to start renting sooner and have the opportunity to negotiate the price. It also often provides more scope for value-add strategies, i.e. increasing the value of the property through renovation, layout changes or a higher standard of finish. At the same time, it is necessary to take into account the risks associated with the technical condition of the premises, the costs of modernisation and the time needed to prepare the property for letting.

When investing, it is crucial to compare figures, not just general advantages. It is worth analysing:

• the total cost of entry, including finishing or renovation,
• the start date of the lease and any ‘empty months’,
• the potential for property value growth in a given location,
• the risk of additional costs after purchase,
• the flexibility of the exit strategy, i.e. the possibility of sale.

During the INRE Investment Property Fair, visitors can compare investment approaches and organise their knowledge of the primary and secondary markets. It is a good opportunity to ask questions, analyse different scenarios and decide which model better suits your strategy and budget.