Re-Sale Apartments Fail To Woo Buyers

May 5, 2007	(Be the first to rate this story!)  Loading ...
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Soaring residential real estate prices and interest rates on home loans in Metros have brought a decline in demand for new homes here. This has in turn resulted into a sharp drop in demand for re-sale flats.

Years old re-sale apartments are hardly able to attract attention of prospective buyers. In comparison to the new residential plots in Delhi, Mumbai, Bangalore, and Kolkata, the demand of these flats has slipped more generally.

However, re-sale apartments are likely to pick up after May as the prices will start falling down by 15-20%. The reduction in prices of flats may encourage the buyers again to queue up for them, says industry watchers.

In May 2006, the demand for these flats grew at the rate of 35-40% as buyers were being bullish on buying such flats. Contrary to this, metros have witnessed a hike of 100% in their respective residential properties sector, putting off buyers from buying new or old apartments, says TrammellCrow Megharaj.

To save on their profit margin, property developers are not offering any discount on new residential real estate projects as they cannot see any hike in prices in the near future. Recent increase in interest rates on home loans is what preventing people to opt for re-sale apartments. Although, it is a short term phenomenon but there will be a slowdown in the residential segment in the long term, says Hiranandani Construction.

News Published Under:   Real Estate Trends |

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