Chennai
Data provided by Chennai Real Estate Agents Association (CREAA), shows Chennai has been witnessing a year-on-year growth in sale of second hand flats. On an average, there has been a 20% hike in the resale market.
Amit Damodar, President, National Association of Realtors (NAR) India-CREAA, Chennai says that second hand apartments are affordable when compared to newer apartments and have a much higher carpet area. “Many people who value lower cost, higher carpet area, etc over additional amenities buy these resale apartments,” he says.
As per CREAA, there has been a growing demand for preowned apartments due to various factors. Shortage of well constructed apartments in core areas of the city is one. Secondly, people who had shifted to newer constructions, located farther away, are looking to return to the heart of Chennai due to lack of social, cultural, health care, and public transport connectivity in outlaying localities. Inadequate infrastructure for basic needs like drinking water and sewerage is yet another reason.
Basic economics also plays a role in the rising demand for second-hand property. Buyers looking at second hand apartments say such properties fetch a good rental income. Additionally, they are easier to liquidate compared to newer constructions in the outskirts.
Second hand apartments come with their advantages and disadvantages. Experts say people should weigh in both.
The advantages include location, lesser price, higher percentage of Undivided Share (UDS) of land, more open space and spacious design, advanced renovation and repairs, established title and other relevant documents.
On the other hand, disadvantages like old structure, water seepage and moisture damage, dated amenities need to be taken into account. The localities in which apartments were constructed decades ago have now become prime spots in the city with good road infrastructure, enviable transport and rail connectivity, with access to medical facilities, and other social infrastructure like hotels and other cultural hubs.
Despite having several advantages, the most important disadvantage in the second hand apartment is the water leakage. This problem arises due to poor waterproofing in toilet, terrace and water tank areas. The old piping in toilets and kitchen pose a continuous threat of water seepage and leakage in the building. However, investors weigh in other aspects.
Shyam, a businessman who preferred a second hand apartment in the city says that it was the cost advantage and the location, which made him go for a used apartment. “When I could get a decent old apartment at a lesser price in the same area why should I invest more in a new apartment?” he asked.
Home front
Ganesh Vasudevan, CEO IndiaProperty.com says established localities with good connectivity, affordable pricing and infrastructure enjoy a good demand for resale homes. Some of the localities seeing such demand for resale homes in Chennai are Avadi, Ambattur, Kolathur, Perambur, Madipakkam, Porur, Valasaravakkam, Chromepet, Kodambakkam, Nanganallur and Adyar.
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