Buy or Wait? How to Decide if an Apartment Under Construction Is the Right Choice
Purchasing a home is one of the most significant financial decisions in a person’s life, and many approach it with particular caution—especially when considering an apartment that is still under construction or even before construction has begun. This step is often described as a risky lottery. Buyers are typically concerned about whether the building will actually be completed on time, whether the promised result will match reality, and most importantly—whether their invested money will be safe. These concerns are understandable. However, buying an apartment under construction is not inherently a “right” or “wrong” choice—the key is to make an informed decision, explains Linda Viktorija Medne, Sales Project Manager at “Merko mājas.”
What Are the Benefits of Buying an Apartment Under Construction?
Purchasing a home at the pre-reservation or construction stage may seem intimidating. However, in recent years there has been steady growth in demand for reserving apartments during construction across all segments—from mid-range to business and premium categories.
A typical buyer might be a young professional couple currently renting or living in a smaller apartment, existing homeowners looking for a new place without urgency to move, or investors and buyers focused on a specific location or project. This choice is not spontaneous but based on practical considerations, such as:
Fixed price and lower costs: Homes purchased before or in the early stages of construction are usually cheaper than completed properties. The buyer pays the price set at the time of reservation, regardless of future market fluctuations. Additionally, new developments are built according to the latest energy efficiency standards, ensuring lower long-term maintenance costs.
Wider selection: Compared to completed projects, buyers at the construction stage have access to a broader range of apartments. This allows them to choose the most suitable layout, building position, and other important factors, rather than selecting from the few remaining units. Early buyers also have better chances to secure parking spaces and/or private storage units.
More time for financial planning: The construction period gives buyers additional time to prepare their finances. The process typically begins with a small pre-reservation fee, which secures the apartment and fixes the price. This fee is later included in the total purchase amount. It is followed by a reservation fee, and the remaining balance is paid after the building is completed.
Opportunity to personalize the home: Developers of new projects often offer buyers the option to customize interior finishes. Buyers can choose flooring, tiles, wall colors, doors, sockets, switches, and plumbing fixtures. These details help tailor the home to personal style and lifestyle, turning an apartment into a true home.
Potential to earn profit: In high-demand locations, early purchase can allow buyers to benefit from property value appreciation. As market prices rise, the difference in value often materializes by the time construction is completed—offering potential capital gains if the property is sold, while keeping in mind that real estate markets can fluctuate.
Five Steps to Make an Informed Decision When Buying an Apartment Under Construction
To ensure a safe and well-considered purchase, it is important to follow a clear plan. According to Linda Viktorija Medne, these five steps can help buyers make the right decision:
Consult with a bank: Buyers are advised to contact a bank early, once they decide to search for a home. This helps clarify financing options and determine the available budget. Afterward, they can analyze the market and identify suitable properties.
Research the developer: Make sure the developer has a strong reputation and experience. Review previous projects—were they completed on time, does the quality match promises, and how have buildings held up over time? It is also useful to read resident reviews and check publicly available information about the company and its cooperation with banks, as this can affect loan conditions and down payments.
Meet with a sales representative: A meeting provides detailed insights into the project, apartment layouts, technical specifications, finishing options, and timelines. It’s an opportunity to ask questions and receive professional guidance, making the decision process more informed and confident.
Assess your finances: Once you have selected an apartment, ensure that your budget and long-term needs align with the purchase and payment schedule. Keep in mind that completion may take several years—use this time to build savings. It is recommended to pay the reservation fee only after receiving bank approval for a loan.
Handle the legal aspects: Carefully review all contract terms, including reservation and purchase agreements. Check timelines, payment schedules, rights and obligations of both parties, and what is included in the price. The contract should also define what happens in case of delays or unforeseen circumstances and include guarantees regarding project completion.
Marathon, Not a Sprint – When Is a Completed Home the Better Choice?
“An informed choice starts with knowledge and the ability to understand both the benefits and nuances of buying an apartment under construction. This type of purchase is more like a marathon than a sprint—it requires patience, planning, and long-term thinking. The more thoroughly a buyer researches the developer’s experience, financing conditions, and contract terms, the more confident their decision will be.
Buying during construction offers the opportunity to choose the most suitable apartment, often at a better price and with greater customization options. Of course, timelines and technical details must be considered, but with careful planning and informed decision-making, it is an excellent opportunity to acquire your dream home,” explains Linda Viktorija Medne.
