Price hikes, scarcity of ready homes driving demand in resale realty market

Sales of completed or nearly completed homes by first owners are booming as demand outstrips market supply, and potential buyers are increasingly considering the resale market as a viable alternative, reported The Economic Times (ET).

This trend is influenced by a lack of newly built homes available for immediate occupancy, a shortage of new construction, and rising prices in major markets, it added.

Demand for resale residential properties

Saurabh Garg, co-founder and chief operating officer of NoBroker, said that the demand for resale residential properties has significantly increased across cities in recent times.

"The lack of new developments and the delays in construction projects are to blame for this scarcity. In order to find a home quickly, potential buyers are increasingly turning to the resale market," he added.

The demand for ready-to-move-in apartments has doubled in the last six months, with inventory running low in many major markets.

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According to NoBroker, buyers are actively seeking 3BHK and larger properties, particularly in cities such as Bangalore, Mumbai, and Pune. These buyers are looking for homes with two workstations, study rooms, and recreational areas such as patios, it added.

"Home buyers who bought properties three to four years ago are now receiving delivery of their assets. As a result, there is an increase in secondary supply because investors can now sell a ready asset at a profit. Additionally, when prices increase, volume typically declines. However, this time the situation is defying microeconomic fundamentals, and the market is still experiencing an increase in demand," said Vyoma Pandit, co-founder of Flow Realty India.

Carpet area advantage

Resale properties frequently offer a cost and carpet area advantage as they are typically priced lower than newly constructed properties.

This affordability factor makes resale homes an appealing option for budget-conscious buyers looking for the best value for their money.

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Larger carpet areas in resale units, as well as lower prices of 15-30 per cent for resale units compared to new launches, are also driving demand.