Buy­ers are drawn more to new projects

The re­sale mar­ket in cities like Delhi, Mum­bai, Pune, Ben­galuru and Chen­nai may con­tinue to grow, but home­buy­ers are look­ing at in­vest­ing in brand new apart­ments with the lat­est fea­tures and fa­cil­i­ties

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Hi stor­i­cally, cities like Mum­bai, Pune, Ben­galuru and Chen­nai have al­ways en­joyed a strong re­sale res­i­den­tial mar­ket. Buy­ers were pri­mar­ily fo­cused on price and flat size, and the re­sale mar­ket tended to of­fer good deals on both these counts.

This sce­nario has now changed vis­i­bly, and a new t rend of ‘ home ob­so­les­cence’ has be­come a firmly en­trenched mar­ket dy­namic. Kishor Pate, CMD, Amit En­ter­prises Hous­ing Ltd, says, “Fun­da­men­tally, the process that ren­ders homes ob­so­lete can be com­pared to that of elec­tron­ics and home ap­pli­ances. Be­cause of rapid tech­no­log­i­cal ad­vance­ments and high com­pet­i­tive­ness among sup­pli­ers of such goods, the newer range of prod­ucts have an at­trac­tive range of added fea­tures that makes the older mod­els re­dun­dant and un­de­sir­able.”

Com­mer­cial spa­ces in age­ing of­fice com­plexes are not as in­ter­est­ing to oc­cu­piers be­cause they lack the mod­ern fea­tures of newer of­fice projects. Like­wise, res­i­den­tial projects which were de­vel­oped as lit­tle as five years ago lack the at­trac­tive value-adds which are avail­able in the lat­est projects. Con­struc­tion tech­nol­ogy, de­sign trends (both at the project and in­di­vid­ual unit level), in­ter­nal fit­tings such as plumb­ing, san­i­tary­ware and elec­tri­cal ap­pli­ances have all taken a quan­tum leap for­ward in terms of func­tion­al­ity, user­friend­li­ness, vis­ual ap­peal and cost ef­fec­tive­ness.

Pate adds, “In many cases, older projects of­ten do not have ad­e­quate park­ing, com­mon ameni­ties and open spa­ces, as they were de­vel­oped be­fore the lat­est reg­u­la­tions con­cern­ing these were en­forced. The com­bined ef­fect of these has re­sulted in the rapidly re­duc­ing pop­u­lar­ity of re­sale homes among home buy­ers. While it is true that some re­sale prop­er­ties of­fer more cen­tral lo­ca­tions, it is equally true that these lo­ca­tions tend to be be­set by mas­sive in­fra­struc­ture dead­locks to­day. Also, older projects will lose in in­vest­ment value at a rate pro­por­tion­ate to the age of the project.”

In con­trast, buy­ers who chose to opt for a brand new apart­ment have sev­eral ad­van­tages, says a real es­tate con­sul­tant. In the first place, they can opt to in­vest in an apart­ment at sig­nif­i­cant dis­counts while the project is still un­der con­struc­tion. Se­condly, they ben­e­fit from the fact that such projects have fresher de­signs, are fully com­pli­ant with the lat­est de­vel­op­ment reg­u­la­tions and have fea­tures such as rain­wa­ter har­vest­ing and re­served park­ing. The units them­selves have the lat­est elec­tri­cal fit­tings and have su­pe­rior lay­outs.

A l s o, t h e i nve s t m e n t value of new flats re­mains on an up­ward tra­jec­tory for sev­eral years, says a bro­ker active in the Noida mar­ket. While the re­sale mar­ket will con­tinue to draw at­ten­tion, many home­buy­ers in cities like Delhi, Mum­bai and Pune will not set­tle for any­thing less than a brand-new flat with the lat­est fea­tures and fit­tings.

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