John

As the demand for new homes dips in the metros because of escalating prices, re-sale flats are also seeing a 60% drop in demand in Mumbai, Delhi, Kolkata and Bangalore, thanks to high prices and interest rates on home loans.

Builders and consultants say that unlike last year, buyers are shying away from re-sale apartments that are 10-15 years old. When compared, re-sale apartments sell at prices which are less by 10% than those of new residential projects.
The recent trend shows that the buyers are not excited about re-sale apartments till the end of May, after which prices are estimated to start falling by about 15-20%. It is advised that it would be better if buyers wait for realty prices to reduce first and then opt for re-sale apartments.

In May last year, the demand for re-sale residential flats grew at the rate of 35-40% as buyers were opting for such flats. But in metros such as Mumbai and Delhi, realty prices in the residential sector have increased by almost 100% over the past one year, preventing buyers from buying new or old apartments.
Besides this, builders are not even offering discounts on new residential projects as they feel the residential realty sector will see a dip in prices in the near future. Not opting for a re-sale apartments is a short-term phenomenon due to the recent hike in interest rates on home loans. However, there will not be a slowdown in the housing industry in the long-term.