Resale property market booms amid price hikes, scarcity of ready homes

economictimes.indiatimes.com:

Factors contributing to this trend include a scarcity of newly constructed properties ready for immediate occupancy, a dearth of new developments, and escalating price hikes in major markets. “Recently, there has been a notable surge in the demand for resale residential properties across cities. This scarcity is due to delays in construction projects and a lack of new developments.

Consequently, prospective buyers in urgent need of housing are increasingly looking towards the resale market as a practical alternative,” said Saurabh Garg, co-founder and Chief Business Officer NoBroker, the first brokerage free prop-tech startup that connects homebuyers to owners. The need for ready-to-move-in apartments has doubled in the last six months, with inventory drying up across major markets. According to NoBroker, buyers, particularly in cities like Bangalore, Mumbai, Pune, and others, are actively seeking 3BHK and larger properties.

These buyers are specifically interested in spacious homes that can accommodate two workstations, study rooms, and recreational areas like patios. “Home buyers who purchased properties 3-4 years ago are now getting delivery of their assets. This is leading to a secondary supply uptick as investors are now getting an opportunity to exit a ready asset at good prices.

Also, typically volume drops if prices move up. Still, this time the situation is defying micro-economic fundamentals, and the market continues to see an uptick in demand,” said Vyoma Pandit, cofounder of Flow Realty India. Resale properties often present a cost and carpet area advantage, as they are commonly priced lower than newly constructed properties.