Certain cities including Mumbai, Bengaluru and Pune are seeing increased demand for larger properties, with increased space requirements for recreational areas and workstations. Resale properties offer cost and carpet area advantages, typically starting 15-30% lower than new offerings in the same area.
Sales of completed or nearing-completion homes by first owners are booming as demand outpaces market supply, with prospective buyers increasingly viewing the resale market as a viable alternative. Factors contributing to this trend include a scarcity of newly constructed properties ready for immediate occupancy, a dearth of new developments, and escalating price hikes in major markets.
How research reports mask the (grim) realities of real estate
Reports by real estate consultants and analysts are typically euphoric, but they gloss over actual events, including that several transactions that were hanging were concluded due to the recent stamp duty in Maharashtra.
The stamp duty cut is the trigger, but seeing it in isolation is being blinkered. Several types of transactions are underway.
There has been a flurry of bullish and ultra-bullish research reports on the real estate sector in recent months. As a well-wisher of the Mumbai real estate industry, I normally share the ones to builders that have something encouraging and insightful.