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9 Reasons Why brokers
should focus on resale
market
RE/MAX Mumbai Gujarat Maharashtra
Lot of inventory
• There is a lot of inventory yet to be
possesed
• So investors have bought the units
but no one to use it.
RE/MAX Mumbai Gujarat Maharashtra
High interest rates
• Historically high interest rate has
kept EMI unaffordable
• Hence salaried class still cannot buy
homes – which is the bulk of Indian
consumer
RE/MAX Mumbai Gujarat Maharashtra
Plan pass complexity
• Thanks to regulation changes by
State governments : Passing a plan
for a new project is very difficult.
RE/MAX Mumbai Gujarat Maharashtra
Central government regulation
• The new central govt regulations
require all requisite permissions
even before a single booking is
done.
• This increases the cost
• It also delays new
projects
RE/MAX Mumbai Gujarat Maharashtra
Sand mining restriction
• Critical component of new
construction- Sand is now a scare
commodity
RE/MAX Mumbai Gujarat Maharashtra
Inflation
• High inflation increases the cost of
construction
• Reduces the disposal income of
people to save for real estate
investment
RE/MAX Mumbai Gujarat Maharashtra
Slow Economy
• Economy growing at less than 7%
doesnt have enough saving for a
real estate boom
• Economy set grow at 5% for few
more years.
RE/MAX Mumbai Gujarat Maharashtra
Life of property
• Life of a property is 50 years and it
changes on an average 5 owners
before its redeveloped.
• The total sale of second hand car is
more than new cars in India
RE/MAX Mumbai Gujarat Maharashtra
A lot of options :
• The past real estate boom has left a
lot of options
• Each unit is unique and hence
requires special selling
RE/MAX Mumbai Gujarat Maharashtra
Thank You

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9 reasons why brokers should focus on resale market

  • 1. 9 Reasons Why brokers should focus on resale market
  • 2. RE/MAX Mumbai Gujarat Maharashtra Lot of inventory • There is a lot of inventory yet to be possesed • So investors have bought the units but no one to use it.
  • 3. RE/MAX Mumbai Gujarat Maharashtra High interest rates • Historically high interest rate has kept EMI unaffordable • Hence salaried class still cannot buy homes – which is the bulk of Indian consumer
  • 4. RE/MAX Mumbai Gujarat Maharashtra Plan pass complexity • Thanks to regulation changes by State governments : Passing a plan for a new project is very difficult.
  • 5. RE/MAX Mumbai Gujarat Maharashtra Central government regulation • The new central govt regulations require all requisite permissions even before a single booking is done. • This increases the cost • It also delays new projects
  • 6. RE/MAX Mumbai Gujarat Maharashtra Sand mining restriction • Critical component of new construction- Sand is now a scare commodity
  • 7. RE/MAX Mumbai Gujarat Maharashtra Inflation • High inflation increases the cost of construction • Reduces the disposal income of people to save for real estate investment
  • 8. RE/MAX Mumbai Gujarat Maharashtra Slow Economy • Economy growing at less than 7% doesnt have enough saving for a real estate boom • Economy set grow at 5% for few more years.
  • 9. RE/MAX Mumbai Gujarat Maharashtra Life of property • Life of a property is 50 years and it changes on an average 5 owners before its redeveloped. • The total sale of second hand car is more than new cars in India
  • 10. RE/MAX Mumbai Gujarat Maharashtra A lot of options : • The past real estate boom has left a lot of options • Each unit is unique and hence requires special selling
  • 11. RE/MAX Mumbai Gujarat Maharashtra Thank You