Nandini Upadhyay’s spacious 2.5BHK home in Ghatkopar, Mumbai is turning heads. This apartment complex is within walking distance of the subway and train station, with easy access to the nearby Eastern Express Highway. This 9-year-old, 15-storey complex offers convenient amenities such as an elevator and covered parking, as well as a gym and children’s play area. The apartments have spacious living areas and come with 8×10 feet balconies, which is a luxury in a city like Mumbai. But the 61-year-old has been struggling to find a taker for the home over the past few months. When the property was listed on an online brokerage platform, the response was slow. The apartment, which has an asking price of 1.6 billion to 1.7 billion rupees, is still unsold. Upadhyes may have to be sold below market price.
For many homeowners in upscale cities, the reality is grim. The housing market has been booming in recent years. The launch of new projects has seen a buying frenzy. Despite this housing boom, resellers are having trouble finding qualified buyers. Pune-based operations manager Shailesh Kamath (38) recently sold his flat in the city’s Wagholi area for Rs 3.25 million after putting it up for sale for more than Rs 4 million. I was relieved that the sale was decided after spending a year looking for a buyer, but I am also filled with regret. He had bought a 2BHK house in 2016 for Rs 32 million. Eight years later, Mr. Kamath made a profit of just Rs 50,000 on his property. After factoring in maintenance fees and other charges over the years, he effectively lost money on his investment.
Many others find it difficult to unload their valuable real estate assets. For some people, it is a source of stress and anxiety. Find out what’s stopping sellers from finding buyers. We also offer suggestions on how homeowners can improve the marketability of their properties and what prospective buyers can learn from sellers’ experiences.
Why can’t my house sell?
Homes often go unsold through no fault of the seller. If there are ongoing disputes over land or incomplete documents, buyers will naturally be hesitant. Lack of basic amenities like running water and parking space can ruin any deal. In some cases, mismanagement or connivance on the part of builders can make apartment complexes virtually uninhabitable, making resale a difficult proposition. Honey Jagyasi, 35, bought an apartment in a prominent developer’s sprawling 28-tower township project in Thane in 2020. It was later discovered that the town was divided into clusters with different housing societies and faced ongoing internal conflicts over the use of shared facilities such as clubhouses and swimming pools. Four years ago, the builder unfairly increased the maintenance fees for new residents, and the maintenance fees for Jagyasi’s housing increased unreasonably. Clusters have limited access to certain facilities. For the past two-and-a-half years, the apartment could not be sold and its value of Rs 80 crore never increased. “This experience taught me a hard lesson,” she laments. “I will never buy property again. Never in a gated community. I prefer to live in a rental.”
Sellers often misjudge the value of their properties, and incorrect pricing is the main reason why many existing homes remain unsold. Sahil Verma, COO of Shray Projects, says even a small price tag can dampen buyer interest and prolong the sale. Sellers often set false expectations. Ravi Shankar Singh, Managing Director, Housing Transaction Services, Colliers India, argues: “The current market has a limited supply of move-in ready products, so sellers have high expectations, and most of them are just listing to find out the price without any serious intention to sell. ”
Sellers often overvalue their property due to emotional attachment and do not consider its condition compared to the market average. “Sellers need to realize that they cannot directly compare the price of their properties to new gated projects that offer superior amenities,” Verma points out. Older properties typically sell for 10-15% less than new construction. In some markets, the difference could be even greater.
Buyers are well aware of the latest price trends. Sumit Jain, Chief Business Officer, Square Yards, said: If a property is overpriced or not to the buyer’s taste, buyers are more likely to avoid it. ”
Supply of fresh inventory to attract buyers
Buyers prefer newer projects with modern amenities and features.
Singh also points out that buyers are also aware of their financial readiness. Properties under construction are preferred by ambitious buyers who don’t want to shell out huge sums of money all at once. Jayesh Rathod, Director and Co-Founder of Guardians Real Estate Advisory “I often choose,” he added.
New construction homes and gated communities have several advantages over resale homes that attract most buyers. Jain said, “Purchaser preferences, especially among end users, are moving towards properties with modern amenities and strong security features, making gated communities highly desirable.” Older homes and projects that lack these features may struggle to compete in the market and may not appeal as strongly to buyers. ”Rathod says, “Many buyers are attracted to newly launched or under-construction projects that offer facilities such as gyms, pools, parks, etc.Older homes may have outdated equipment or are in need of repair.” This may make it less attractive.”
Verma suggests that modern homebuyers often have different priorities compared to previous generations. “Energy efficiency and smart home features are becoming increasingly important, with open floor plans and multifunctional spaces being preferred over traditional layouts,” he says. Buyers also don’t mind paying a premium for apartments in projects developed by big brands.
A large amount of unsold inventory in the secondary market is feeding into the resale market.
Developers are under pressure to sell unsold inventory.
illusion of liquidity
Real estate is a preferred asset for many Indian households and is expected to enjoy significant capital appreciation. However, its relative illiquidity often surprises sellers. Verma from Shray Projects explains: Properties in prime locations or with popular features may sell quickly, but some may remain on the market for a long time. ” Even during a housing boom, there is no guarantee that you will be able to sell quickly and at a profit, Verma added. Housing market experts argue that the perceived liquidity of real estate is actually an illusion.
Rathod asserts: “Real estate is generally an illiquid asset and can take a long time to sell, even in strong markets. ”, argues Colliers India’s Mr. Singh. “While residential real estate has historically provided excellent capital appreciation, I strongly believe that it should not be treated as a financial investment product. It needs to be more needs-based and should consider buying a home to upgrade their lifestyle.”
Nandini Upadhye (right), 61, Mumbai, flat unsold for last 7-8 months.
Located in Ghatkopar, the property is well connected to metro, rail and city expressways. The spacious 2.5 bedroom home comes with a large 8 x 10 foot balcony, considered a luxury in Mumbai. This property has been listed on multiple online platforms, but the response has been lukewarm.
Experts say buyers should remain cautious when purchasing a home. Jain says, “Factors such as location, future development potential, market trends and property values need to be carefully evaluated to ensure a sound investment.” The preference for new gated communities means they often have better resale value and liquidity than older single-family homes, and future demand is key to investment decisions, Rathod said.
Kamath, who bought an apartment in Pune without doing proper market research, now realizes that he overpaid for the apartment and misjudged its potential. “It’s important to understand the local market. If we had researched trends in the neighborhood, we could have negotiated a better price,” Camas regrets. Development of nearby buildings, roads, and facilities can increase or decrease the attractiveness of a property. These are factors that are out of the homeowner’s control. Upadhyay, whose apartment in Mumbai remains unsold, believes that the nearby Maharashtra Housing and Regional Development Authority tenements are reducing the attractiveness of her complex.
How to attract buyers
Sellers who are struggling to find a buyer should not lose hope. Although new developments are getting the most attention, many buyers are still looking for a good deal on the resale market. Concerns about delays with homes under construction often lead buyers to move-in ready properties. Sellers need to make the right pitch. Verma said: “Although we may not be able to offer all the amenities of a new build development, keep in mind that your property may have its own advantages, such as character, location, and customization potential. Highlight these strengths while proactively addressing their concerns.”
Shailesh Kamath, 38, Pune, sold the flat after 8 years at the purchase price.
In 2016, he bought a 2BHK house in Wagholi area for Rs 32 million. I bought an apartment on a whim without doing proper market research on local price trends. It was initially put up for sale at Rs 32.5 million, but it was sold this year for Rs 32.5 million. .400,000 yen. To maintain the attractiveness of your property, be sure to keep up with maintenance. Be sure to address any defects such as leaks or cracks before inviting bidders. “Simple upgrades like a fresh coat of paint, updated fixtures, and landscaping can increase a property’s appeal,” says Jain.
Maintain visibility of your property to potential buyers. Simply listing your property on an online platform may not attract attention. In this digital age, the way a property is displayed online is extremely important, argues Verma. “Poor quality photos or limited visual content can deter potential buyers. A poorly marketed property will attract potential viewers regardless of market conditions. You may not get enough,” he added. Jain says, “Professional staging and high-quality photography are essential for online listings, helping buyers visualize the space and increase interest.”
The primary housing market continues to see steady penetration.
The housing market is booming, but resellers are being forced to temper their expectations.
Moreover, by onboarding experienced and trusted RERA registered brokers to outsource your sales, you can gain better localized insights on market trends and speed up your sales process. Realistic pricing is also important. The Guardian’s Rathod says: “Pricing your property competitively by following market trends and obtaining professional valuations will help you set realistic expectations.” Suggests.
Finally, make sure your property can withstand all the scrutiny. “Answer and prepare for a detailed inspection. Make sure all relevant documents and certificates are readily available,” says Verma. Many homeowners are unaware of important documents such as title deeds, deeds, and debt certificates. Missing documents can stall your real estate sale efforts.
Sellers who adjust their expectations to market conditions, invest in necessary updates, and market their properties effectively are more likely to find a buyer, even in a competitive environment.
Honey Jagyasi, 35, Thane, has been sleeping in an unsold flat for the past two-and-a-half years.
In 2020, he bought a 2BHK house in a township project of a prominent builder for Rs 8 million. Infighting frequently occurs between societies within the township over amenities and maintenance. Builders are blocking access to common amenities over payment of fees. The increase in market value is zero. .
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