India's Secondary Real Estate Market Grows to 43% Share by FY25: Square Yards
A recent analysis by real estate consultancy firm Square Yards reveals that the secondary real estate market in India is expected to capture a 43% share by the end of FY25. The study covers seven major cities, including Bengaluru, Hyderabad, Mumbai, Navi Mumbai, Noida, and Greater Noida, highlighting the growing trend of secondary property purchases.
Real EstateSecondary MarketProperty InvestmentIndiaSquare YardsReal Estate MumbaiApr 27, 2025
The secondary real estate market refers to the segment where properties are sold by their current owners, as opposed to newly constructed properties. This market has been gaining traction due to various factors, including a preference for immediate occupancy, better infrastructure, and a matured real estate sector. In the past few years, the secondary market has seen a notable increase in transactions, driven by both domestic and international buyers.
Mumbai, one of the largest cities in India, has been a significant contributor to this growth. The city's dense population and robust economic activity have made it an attractive destination for property investors. Navi Mumbai, a well-planned suburban area, has also seen a surge in secondary property sales, thanks to its excellent connectivity and affordable housing options. Similarly, Bengaluru, often referred to as the 'Silicon Valley of India,' has witnessed a steady rise in secondary market transactions, driven by the city's booming IT sector and expanding job opportunities.
The report by Square Yards highlights several key factors contributing to the growth of the secondary real estate market. One of the primary reasons is the preference for ready-to-move-in properties among buyers. This is particularly important for those who are looking to relocate or upgrade their living conditions without the hassle of waiting for new construction projects to be completed. Additionally, the secondary market offers a wider range of property options, including both residential and commercial spaces, catering to diverse buyer needs.
Another significant factor is the improved regulatory environment. The implementation of the Real Estate (Regulation and Development) Act (RERA) has brought a higher level of transparency and accountability to the real estate sector, making it more attractive for buyers to invest in resale properties. This has helped to build trust in the market, leading to increased transactions in the secondary segment.
However, the growth of the secondary real estate market is not without its challenges. One of the primary concerns is the issue of property valuation. Determining the right price for a resale property can be complex, especially in a market where demand and supply dynamics are constantly changing. Buyers need to be well-informed and work with experienced real estate agents to ensure they get a fair deal.
Despite these challenges, the future of the secondary real estate market in India looks promising. The report by Square Yards predicts that the trend will continue to grow, driven by a combination of economic factors, policy support, and changing buyer preferences. For real estate developers and investors, this presents a significant opportunity to tap into a market that is poised for substantial growth.
In conclusion, the secondary real estate market in India is on the rise, with a projected 43% share by FY25. This growth is driven by a combination of factors, including the preference for ready-to-move-in properties, improved regulatory frameworks, and a matured real estate sector. For buyers and investors, this presents a valuable opportunity to explore the diverse options available in the secondary market, especially in major cities like Mumbai, Bengaluru, and Navi Mumbai.
Frequently Asked Questions
What is the secondary real estate market?
The secondary real estate market refers to the segment where properties are sold by their current owners, as opposed to newly constructed properties. It includes both residential and commercial properties that are being resold.
Which cities are included in the study by Square Yards?
The study by Square Yards covers seven major cities in India: Bengaluru, Hyderabad, Mumbai, Navi Mumbai, Noida, and Greater Noida.
What are the main factors driving the growth of the secondary real estate market in India?
The main factors driving the growth include the preference for ready-to-move-in properties, improved regulatory frameworks (such as RERA), and a matured real estate sector with better infrastructure.
What challenges are associated with the secondary real estate market?
One of the main challenges is the issue of property valuation, which can be complex in a market with dynamic demand and supply conditions. Buyers need to be well-informed and work with experienced agents to ensure fair deals.
What is the projected share of the secondary real estate market by FY25?
According to the report by Square Yards, the secondary real estate market is expected to capture a 43% share by the end of the fiscal year 2025.
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