The sales in the secondary property market are slowly coming back to normal. Though the growth in sales is just 15-20 per cent compared to last year, the interesting bit is that many developers and brokers have started buying properties in anticipation of increase in prices in the next 18-24 months.
"We are looking at options in secondary residential market in many places especially Mumbai and NCR since the prices are flat and one will get a good deal on the property. It is the best time to buy a property in resale market," a CEO of a leading developer told Business Standard on the condition of anonymity.
The secondary market has been showing good numbers over the last 6-12 months.
A broker based in Noida says he has been buying few properties since last year in good locations and plans to sell them off at a higher price later this year. "Buyers are not coming in good numbers in the secondary market, though some sales have been happening. Prices have been stagnant for last 1-2 years or only marginal uptake in specific localities," he said.
Over the last few years, the brokers have also slowly started shifting towards secondary market as many are reluctant to buy new properties because of fears of delay in possession and other issues. According to experts, the number of queries for ready to move in and resale properties has seen maximum increase after the formation of a stable government. But, a revival in the sector is still 18-24 months away.
New real estate portals like PropTiger and Commonfloor are also focusing on the secondary market in a big way. Few years old realty portal PropTiger last week acquired Makaan.com, a major player in the secondary market.
"At PropTiger, our strength is end to end services in primary segment, while Makaan.com with its relationships with over 40,000 brokers across 50 major cities has great control of secondary market, that's where the synergy will flow in from.We had already started the pilot project in the secondary market and are getting a good response. Soon, we will live in all cities where we have bases," said PropTiger co-founder Prashant Agarwal.
The realty sector has been facing difficult times for the past few years because of issues ranging from delivery delays to fund crunch and declining sales, continues to be hit by a huge inventory, a drop in the number of new launches and delivery blues shaking the buyers as well as investor's confidence.
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