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Every home buyer eventually ends up at the same crossroads in time – whether to buy a newly constructed property equipped with all the modern amenities or opt for a resale property in an existing and ready to move into neighborhood. Your personal taste isn’t the only thing that matters in when deciding between new construction vs resale property. It is determined by several factors such as financial condition, possession timeline and level of assurance needed to make the investment.
Read more: New Construction vs Resale PropertyThe new vs resale dilemma has gained increasing relevance in the Indian market scenario of today. Pricing gaps are increasing between the new launches and resale homes over the past few years which has been seen across major cities.
According to Outlook Money:
As per the Global Property Guide:
The figures show an actual trade off: the cost new construction is rising all the time, while the price of resales still enjoys an edge, so long as the purchaser can cope with living in a previously owned house.
New construction normally cost more, given the increasing costs of purchasing land, high prices of construction materials, as well as quality amenities that are not found in resale homes. Resale houses will, however, provide discounts in terms of price when compared to new homes of similar location and size. This gives budget conscious buyers more room to negotiate.
One of the biggest points of differentiation here is that when purchasing resale homes, you get immediate possession. You can move in right after the transaction and paperwork gets completed. There can be some possession delays in case of new constructions or under construction projects. These can stretch from many months to a few years which matters a lot for buyers on a tight relocation or family timeline
In respect of newly launched projects that are registered with RERA, buyer protection is very high with regard to time frame commitment, escrow based usage of funds and imposition of penalty for delay. However, resale properties do not get covered by the project registration under RERA, hence buyers have to take greater responsibility for conducting due diligence in respect of the property title and encumbrance certifications. They have to confirm on their own about any pending dues or legal disputes.
Resale properties are mostly located in established neighbourhoods. This is where functioning schools, hospitals, markets and public transport are already in place. New projects, especially those that are in emerging or peripheral corridors, may still be waiting on surrounding infrastructure to catch up. This can mean a few inconvenient years before the locality feels fully developed even if long term appreciation potential is strong.
A brand new house offers an empty slate from contemporary floor plans, up to date electrical work and plumbing to the opportunity to pick out finishes prior to possession. A resold house may need some repair, updating or even renovation depending on its age and maintenance history. So this is something that should be included in your budget considerations.
Both of these options have potential as profitable investments in their own ways. New projects in developing corridors would have better capital appreciation in the long run as the surrounding area matures. Meanwhile, resale properties in matured and connected localities may have more definite demand right away, since many tenants prefer living in already established localities with existing amenities.
When you need immediate occupation, security of viewing what exactly you are purchasing and a reputable neighborhood, a resale property will be a more sensible option.
When you are willing to wait for your possession, require contemporary facilities, RERA backed protection and are looking at making an investment that can give you profits after a certain period, a new construction could be justified.
For buyers evaluating options across the Chandigarh Tricity region in Zirakpur, Mohali and Panchkula, the choice usually depends on the different sector specific issues, such as the state of completion of the project, the state of development of the infrastructure and comparison between the price being asked and the resale deals in that particular pocket. A proper property valuation is crucial in making comparisons of the two options on offer.
There’s no universally better choice in new construction vs resale property debate, it depends completely on what is important to you when it comes to budget, timing and your ability to take risks. New projects have more to offer in terms of designs and regulations, whereas resale properties provide you with immediate possession, proper location and better bargaining power. Compare both types of properties with your specific needs in mind and our team at People’s Property Point is ready to help you in Zirakpur, Mohali and Panchkula. You can explore our current residential options or even contact us for a personalised recommendation.
A – It depends on your requirements because resale homes would suit buyers who require instant occupancy and a well developed area. And new constructions would appeal to those who favor modern facilities and RERA security.
A – The increasing expenses involved in land acquisition, construction material and the premium package of facilities have led to new launches being priced far higher than resale homes in urban cities like Mumbai and Pune.
A – No because RERA mainly deals with new project registrations along with developer obligations. Buyers of resale property must personally check the title deed, encumbrances and pending dues of the property prior to buying.
A – Not necessarily. The resale value of a property depends largely on its location and infrastructure rather than whether the property is new or resale.
A – Check for the title deed of the property, encumbrance certificate, pending dues, occupancy certificate and the NOC from the society. Compare the price asked by the seller with those of similar properties in the vicinity
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