How to recognize quality new construction and a reliable investor

Buying a new build has obvious advantages — a new, move-in ready space, modern construction, energy efficiency, nothing to renovate. But it also comes with its own set of questions that don't arise in the same way with older properties. By new build, we mean a newly constructed building or apartment being moved into for the first time, purchased from a developer — as opposed to a new but already once sold property. With such a purchase, you are buying both the quality of construction, which is not always visible at first glance, and the reliability of the developer behind the project — and if the apartment is still under construction, you are essentially buying a promise of something yet to be completed.

This dual check is important because a new building that looks shiny doesn't necessarily have to be well-built, and an attractive project doesn't necessarily have a reliable developer behind it. Poor execution will show over time, and an unreliable developer can mean problems ranging from delays and poor quality to serious risks when buying under construction. The good news is that much can be checked in advance. In this guide, we break down how to recognize quality new builds — through materials, execution, energy efficiency, floor plans, and documentation — and how to check the developer's reliability through reputation, projects, and financial and legal status.

Dual Check: Construction and Developer

Buying a new build differs from buying an older property in that two things are evaluated together: the quality of the construction itself and the reliability of the developer behind it. With an older property, you inspect an existing object; with a new build, especially one under construction, part of what you are buying is still being created or is not visible, so you also rely on who is building and how. Therefore, the check proceeds in two parallel directions.

These two directions complement each other. Quality construction without a reliable developer is rare — a good developer typically builds well, while a bad one often builds poorly and creates problems. However, both should be checked, because neither a good reputation guarantees that this particular project is flawless, nor a beautiful appearance guarantees quality construction. For the buyer, this means that checking a new build is not limited to viewing the apartment, but also includes researching who is building it. It is important to distinguish between the developer (the one who builds in their own name and sells) and the contractor and designer — the buyer contracts with the developer.

Professional advice: When buying a new build, always check both the building and the developer — a beautiful, new apartment does not guarantee quality construction, nor does an attractive project guarantee a reliable developer. Only when both directions of verification align is the purchase secure.

Construction Quality: Materials, Energy Efficiency, Floor Plans

The quality of construction is the foundation of a new build's value, but it is not always visible at first glance — a new building can shine, yet be mediocrely built beneath the surface. Therefore, it is worth paying attention to the quality of embedded materials and finishes, the execution of details (which reveals care or neglect), the quality of carpentry, installations, and insulation, and the general impression of solidity. Since a layman finds it difficult to assess what is hidden — the structure, installations, subsurface execution — for a more valuable purchase, it is worthwhile to include an expert in the assessment who can recognize quality and spot flaws that a buyer would not.

One of the main advantages of a new build should be energy efficiency, making it a good indicator of quality. However, it should not be taken for granted that "new" automatically means energy efficient — differences among new builds exist and are reflected precisely in energy efficiency, and thus in future utility costs. Therefore, check the energy class and the execution itself (insulation, carpentry, heating and cooling systems); we also write about this in the guide on property energy class. In addition to execution, the floor plan and common parts of the building also permanently shape the value — elements that, unlike decor, are difficult to change. A good, functional layout, natural light, usable square footage, and the quality of common areas, entrance, elevator, and amenities (parking, storage) are all part of what you are buying.

Professional advice: Do not rely on a gleaming first impression — pay attention to the execution of details, carpentry, installations, and the energy class, and value the floor plan and common parts as much as the apartment itself, as they are difficult to change, while surface finishes can be easily refined.

Documentation and Permits

Proper documentation and permits are the foundation of a secure new build purchase, as they confirm that the construction is legal and that you will be able to acquire and use the property without problems. For new builds, this primarily means the existence of appropriate acts — a building permit on the basis of which it is built and, upon completion, an occupancy permit confirming that the building can be used — as well as a properly settled land registry status. It is also worth knowing that an individual apartment as an independent unit is generally registered in the land registry only after the occupancy permit and condominiumization (establishment of ownership of special parts), so registration can be delayed even after moving in.

Checking documentation is particularly important because a lack or irregularity of acts can mean serious problems — from inability to register to legality issues. When buying from a developer, it is worth checking whether the project is properly documented, what the legal status of the land and building is, and whether the as-built condition matches the contracted project (square footage, layout), and then to regulate permitted deviations and their consequences in the contract. This check complements the assessment of construction quality with legal certainty: it is not enough for the building to be well-built, but also that it is legally constructed and that you will be able to acquire it safely.

Professional advice: Do not buy a new build without checking permits and land registry status — quality construction without proper documentation still carries risks, from registration problems to legality issues; legal certainty is just as important as the quality of the building itself.

Developer Check: Reputation, Finances, Contract

The second major pillar of checking is the developer — the company or individual building or having built the project. For new builds, especially those under construction, the project's timely and quality completion, and the buyer's protection, depend on the developer's reliability. The check relies on three sources that together provide a picture of seriousness and capability.

Reputation and Previous Projects
The best indicator of what to expect are previous projects and the reputation the developer has built with them. A developer with a series of successfully completed, quality projects and satisfied buyers is likely to execute the next project similarly; one with no history or a bad reputation is a greater risk. Research what they have built so far, whether projects were completed on time and to the promised quality, and if possible, talk to previous buyers. Completed projects are harder to "embellish" than promises, so they are worth more than marketing.

Financial and Legal Status
Behind the reputation lies the harder side of reliability — financial and legal status, especially important when buying a project under construction, where you are paying for something that is still being created. A financially stable developer is capable of completing the project even with unforeseen circumstances, while an over-indebted or illiquid developer carries the risk of delays or non-completion. You can check the legal personality, ownership structure, headquarters, and authorized persons in the court register at sudreg.pravosudje.hr, and financial stability through publicly available indicators such as blocked accounts; a company in liquidation, pre-bankruptcy, or bankruptcy is a particular warning sign. How to check the legal status of the seller's company is broken down in the guide how to check the seller and company in the court register.

Transparency and Contract
The way a developer operates and contracts says a lot about reliability. A reliable developer communicates clearly, provides full information, and offers a balanced contract that protects both parties; one who avoids questions, rushes, or offers a one-sided contract is a reason for caution. The contract specifies completion deadlines and consequences of delays, warranties for defects, payment dynamics and security, and buyer protection — so it is worth checking with professional help, as it is the legal foundation of the entire purchase.

Professional advice: Investigate the developer as seriously as the apartment itself — reputation through previous projects, financial stability in public registers, and the relationship with the buyer through openness and balance in the contract; the biggest risks of new builds often lie in who is building, not in what is being built.

Specifics of Buying an Apartment Under Construction

All of the above is especially pronounced when buying an apartment under construction, where you are purchasing something that does not yet fully exist, so you rely on the project, promises, and the developer's reliability more than with a completed property. This carries both advantages (often a more favorable price, possibility of selection, a new custom space) and increased risks (delays, deviation from what was promised, in the worst case, non-completion). The greatest risk with direct payment to the developer during construction is that the property may be encumbered — with a mortgage on the land or unfinished building, enforcement, or the developer's bankruptcy; we write about encumbrances in the guide on pledge rights and mortgages.

Therefore, with such a purchase, buyer protection through the payment method is crucial. The highest degree of protection is provided by paying the purchase price into a public notary escrow account linked to construction progress, instead of direct payment to the developer, which may also be accompanied by bank guarantees for the return of the amount paid or for the completion of works. Additionally, the contract should clearly regulate payment dynamics, guarantees, deadlines, and consequences of delays. We break down the process and steps of buying directly from a developer in the guide on buying from a project. Buying under construction with a reliable developer and good protection can be an excellent opportunity, but with an unreliable one, it carries real risks, thus requiring the utmost attention and, almost always, professional help.

Professional advice: When buying under construction, insist that payment goes through a public notary escrow account and is tied to construction progress, not directly to the developer — this protection, along with a financially stable developer, is what separates a secure opportunity from a serious risk.

Tax and Guarantees for New Builds

New builds also have a tax specificity that buyers often confuse. When buying from a developer who is in the VAT system, VAT (at a rate of 25%) is included in the price, so property transfer tax is not paid on that same transaction; this tax, at a rate of 3%, only applies to later resale of used properties between citizens. Young first-time buyers may, under prescribed conditions, claim a refund of part of the VAT or transfer tax — check the specific conditions, amounts, and competent authority with the relevant institutions before purchasing, as rules change.

In addition to tax, it is worth knowing about legal guarantees for new builds. According to the regulations on obligatory relations, the contractor and designer are responsible for defects related to the solidity of the building for ten years from the handover of works, and this applies not only to the first client but also to every subsequent buyer, and this liability cannot be excluded or limited by contract. For other (material) defects, the deadlines are shorter and related to timely notice of the defect, so any observed defect should be reported immediately. In addition to these legal guarantees, additional quality guarantees can be arranged by contract with the developer — check specific deadlines and scope in the contract and applicable regulations.

Professional advice: Remember that the contractor and designer are responsible for the solidity of the building for ten years, and to you as a subsequent buyer — so an observed defect is not "missed" by buying from the developer; other defects, however, should be reported immediately as their deadlines run quickly.

How Regent Can Help You

Recognizing quality new builds and reliable developers requires experience and market knowledge in both dimensions — construction and who is building. As a real estate broker, we help you assess the quality and documentation of a new build, check the developer's reputation and legal and financial status in public registers and the land registry, and review the protection offered by the contract, especially when buying under construction. The legal structuring of the contract and deposit is handled by a public notary and lawyer, and tax treatment by the Tax Administration, while we guide you through the entirety and warn you of risks.

For advice and verification before purchasing a new build, see how buying with Regent works or contact us.

Frequently Asked Questions (FAQ)

How to recognize a quality new build?
Through the quality of materials and execution (especially details, carpentry, installations, and insulation), energy efficiency, a good floor plan and layout, the quality of common parts of the building, and proper documentation and permits. Since part of the quality is not visible at first glance, for a more valuable purchase, it is worthwhile to involve an expert who can spot what a layman would not.

Why is it important to check the developer, not just the apartment?
Because the reliability of the developer determines whether the project will be completed on time and to a high standard, and whether you as a buyer will be protected, especially when buying under construction where you are paying for something that is still being created. An unreliable developer carries risks that go beyond construction quality — from delays and defects to serious problems with project completion.

How to check a developer's reliability?
Through their reputation and previous projects, financial and legal status, and transparency and contract. Legal personality, headquarters, and authorized persons can be checked in the court register at sudreg.pravosudje.hr, and financial stability through publicly available indicators (blocked accounts, liquidation, pre-bankruptcy, or bankruptcy). For more valuable purchases, it is worth involving an expert.

Does "new" automatically mean quality and energy-efficient?
No. Differences in construction quality exist even among new builds, so a new building can be mediocrely built and also less energy efficient than expected. Therefore, it is necessary to specifically check the quality of execution and energy properties, instead of assuming that "new" is a guarantee of quality and efficiency.

What to pay special attention to when buying an apartment under construction?
To the financial and legal stability of the developer and to protection through the payment method. The greatest protection is provided by payment into a public notary escrow account tied to construction progress, instead of direct payment to the developer, thereby protecting the buyer from risks such as mortgages on the land, enforcement, or bankruptcy. The contract should clearly regulate deadlines, guarantees, and consequences of delays.

Why is documentation important for new builds?
Because it confirms that the construction is legal and that you will be able to safely acquire and use the property. Key are the appropriate acts (building and occupancy permits) and a properly settled land registry status. Registration of an individual apartment as an independent unit typically follows only after the occupancy permit and condominiumization, so it can be delayed even after moving in.

Recommended

• Buying from a project: what to know when buying from a developer
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• Property energy class