By Mr. Kishor Pate,
CMD –
Amit Enterprises
Housing Ltd.
Historically, cities
like Mumbai, Pune, Bangalore and Chennai have always enjoyed a strong resale
residential market. This made sense - because of a lack of progress in terms
innovation by developers for almost two decades, homes in old projects did not offer
significant advantages over homes in older projects. Buyers were primarily
focused on price and flat size, and the resale market tended to offer good
deals on both counts.
This scenario has now
changed visibly, and a new trend of 'home obsolescence' has now become a firmly
entrenched market dynamic. 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 has very attractive added features that make
older models redundant and undesirable.
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| Kishor Pate, CMD - Amit Enterprises Housing Ltd. |
Obsoleting is also a
very real fact in real estate, as well. Commercial spaces in ageing office
complexes tend to evince less interest by 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 at
a 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, user-friendliness, visual appeal and cost effectiveness.
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 flat have several advantages. 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 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. Meanwhile, the investment value of new flats remains on
an upward trajectory for several years.
While the resale
market will doubtlessly continue to draw attention, more and more home buyers
in cities like Mumbai and Pune will not settle for less than a brand-new flat
with the latest features, fittings and other advantages.
For media contact
Jay Kalghatgi
Client Interface - CopyConnect
Mobile: 9320142248
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