Resale Property in Pune

The Real Estate Sector in India has been tepid for past few years with low transaction volumes and stagnant price level. The transaction volume reduce drastically due to

  1. Weak economic scenario.
  2. Perceived high price level.
  3. Lack of consumer confidence on the developer.

The demonetization scheme put heavy pressure on the market. In major India cities, there is large unsold inventory with developers but  resale or secondary market is very active.

According to the magicbricks assessment of actively traded properties shows that Southern cities such as Hyderabad, Bangalore, and Chennai have fresh booking option are more than double of resale options but the scenario on Mumbai Metropolitan Region is balanced out.

Magicbricks research also shows that consumer required to pay more for ready to move (RM) options as compared to under construction (UC) properties. Consumer willing pays a premium on completion of projects and delays in projects lead to additional financial burden.

In present scenario, the consumers are looking for ready to move options and the resale option to do better than primary market. [1]

Let us see the effect of demonetization on resale property

According to the real estate developers and consultants, the government decision of demonetize Rs 1,000 and Rs 500 notes would make adversely impact on unorganized builders and resale property market

Anuj Puri, JLL India Country Head and Chairman said that, “Demonetization will not have any impact on the primary market as buyers in this sector are driven by mortgage. The impact will be felt on the secondary market and unorganized developers where they still dealing with cash.” [2]

After demonetization, the prices of residential units in resale property have fallen by up to 30% in some location like

  1. Delhi-NCR
  2. Pune
  3. Chennai
  4. Outskirts of Mumbai Metropolitan Region

The difference in price between the primary and secondary residential markets is increasing, and making resale properties as a good option for home buyers.[3]

Sources

[1] http://realty.economictimes.indiatimes.com/news/industry/the-story-of-indias-real-estate-resale-market/57127461

[2] http://economictimes.indiatimes.com/wealth/real-estate/resale-property-market-small-builders-to-be-hit-by-note-ban/articleshow/55319214.cms

[3] http://www.thehindubusinessline.com/news/real-estate/real-estate/article9496294.ece

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