Resale housing becomes core buying channel amid affordability crunch

Resale homes are turning into a core buying channel as rising prices and premiumisation of new launches squeeze affordability across major cities

India’s housing resale market has emerged as a primary buying channel rather than a fallback option, driven largely by affordability pressures and premiumisation of new launches, according to industry insiders and experts. 

“Resale homes have become a strong alternative to a primary buying channel for value-conscious end-users. They offer a more compelling price-to-value equation and access to established, vibrant neighbourhoods, something new launches often cannot match,” said Saurabh Garg, co-founder and chief business officer of NoBroker. 

Investor exits from the 2020-23 cycle seen by the market have also pumped funding into the resale activity, leading to expansion across major cities. Early investors, sitting on capital appreciation of 60-80 per cent, are liquidating their holdings, releasing ready inventory into the market. 

In Bengaluru, for instance, resale listings rose from 25 per cent of total listings in 2024 to 30 per cent in 2025, led by East Bengaluru, which has overtaken South Bengaluru as the city’s largest resale hub. “Projects launched at ₹3,500-4,500 per square foot in East Bengaluru in 2020-21 are now transacting at ₹10,000-11,000 per square foot in the resale market,” Garg said, adding that similar trends are visible in Hyderabad’s Gachibowli and Pune’s Wagholi. 

Hyderabad recorded a 7 per cent citywide rise in resale listings, with strong traction in areas such as Miyapur, Kukatpally, Bachupally, Kokapet, and the eastern corridor. Mumbai’s resale market also grew 7 per cent, supported by steady demand in core suburbs and the Kalyan-Dombivli Municipal Corporation cluster. Gurugram and Noida each posted a 12 per cent rise in resale supply. In Pune, the south zone remains the largest resale hub at 31 per cent, while the west zone logged steady growth, according to NoBroker data. 

“With primary market prices escalating and new supply tilted toward premium segments, resale and ready-stock homes have shifted from being a tactical alternative to a core buying channel,” said Sanjay Daga, chief executive officer and managing director of Anex Advisory. 

India’s top housing markets have been under sustained affordability pressure, with primary residential sales moderating over 2024 and 2025. According to Anarock, housing sales in 2025 declined 14 per cent year-on-year. However, even as volumes fell, total transaction value rose 6 per cent to cross ₹6 trillion due to higher prices. 

After a muted price phase between 2015 and 2019, average residential prices surged 54 per cent during 2019-24 and rose 8 per cent in 2025, Anarock data showed. Homes priced below ₹75 lakh, which accounted for nearly 60 per cent of sales in 2021, made up just 32 per cent in 2025. 

Meanwhile, resale supply is increasingly catering to buyers priced out of new launches. In 2025, 84 per cent of home seekers in Hyderabad were unable to afford new homes priced below ₹1 crore. The figure stood at 42 per cent in Bengaluru and Pune, and as high as 79 per cent in Gurugram and 62 per cent in Noida. 

“With primary market prices rising sharply in recent years and new supply tilting towards premium and luxury segments, demand for resale homes is growing steadily,” said Santhosh Kumar, vice chairperson of Anarock Group. 

Industry experts also pointed out a shift with buyers shifting toward resale as affordable new launches continue to decline. 

“Resale apartments offer ready inventory, the perceived security of no delay risks, and the ability to negotiate prices, considering the seller’s circumstances,” said Parth Mehta, chairperson and managing director of Paradigm Realty.

 

Between 2024 and 2025, resale prices rose moderately across cities — Bengaluru from ₹7,368 to ₹8,656 per square foot and Mumbai from ₹10,336 to ₹11,665 — while primary market prices remained significantly higher, reaching ₹9,963 per square foot in Bengaluru and ₹14,412 in Mumbai. The gap is even more pronounced in the National Capital Region, where primary prices in Gurugram stood at around ₹18,000 per square foot, compared with resale levels of about ₹12,000.