I have subscribed to Google news on real estate. I get around 6 news items daily. But since the last 6 months, of the 1080 articles, I have not seen more than 3 articles on the secondary markets.
Secondary market — what and why?
Secondary real estate market comprises of everything that’s not primary. It is an anti-definition, but a lot easier to understand. Primary market is the market of all newly built apartments which are being sold by the developer himself.
So secondary market is everything else. Any house, plot, apartment, villa, sold by any individual owner constitutes a secondary or resale transaction.
That sounds big, doesn’t it? It is.
In Bangalore alone, 60% of all the transactions are resale. Now think of the Tier II, III, IV….. cities, where there are hardly any developers.
How is resale in real estate different
The simple truth is that land is a finite commodity. Builders can buy ( a resale transaction in itself! ), build and sell. But it will again be sold by the owner. In the end, during the lifetime of a property, while a primary transaction happens once, the secondary transaction may be done at least 3 times.
Additionally, real estate is the only commodity where resale prices are higher!
This means that if a flat is being sold at ₹ 100 by the builder, in its lifetime, it will further attract at least ₹ 1000 investment.
Still resale is neglected
Because 100 is lot more easier to track and invest than the 500.
- Lack of organization
Builders have lobbies, individuals don’t. - No institutional investment
All resale properties are localized single entities. - Scattered data
The sales are huge, but non-uniform and scattered. Most of the state governments have e-records for land, but in different formats and not integrated. - Data is unavailable to public
An RTI will not get you the data from sub-registrar offices. They keep records as isolated transactions, and it will cost a fortune to organize them.
The outcome of neglect
A resale transaction becomes extremely difficult. While primaries are being done at a button click, the resale takes months to happen. A resale transaction is 100 times more effort and time than a primary one.
Restore the balance!
Let’s bring resale in the limelight.
Thank you media, builders, brokers and classifieds! You have deliberately left a space that has so much potential. We, at Settlin, will definitely leverage it.
Data and transaction, both are equally crucial for this market. We are handling them both in an innovative way. By June 2017, entire Bangalore will experience hassle-free resale transaction at their finger tips.
