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At the outset, an emphatic YES! One would say considering property prices have been on the downturn for the last 2 years with Year on Year ( 2018 -19 ) fall of around 6 %, buying resale apartments has never been as lucrative as in the current market conditions in Mumbai.

Maximum city Mumbai, the financial capital of the country, unfortunately, is also one of the costliest cities in India. And if you have relocated to the city for work, putting up at a convenient location is a priority. The usual options people go for are; renting an apartment or living as a paying guest in Mumbai

Both the options may be reasonable for a short term, say two to four years. But with escalating prices, rents keep moving up every 11months. The same is the case for a paying guest in Mumbai who shells out somewhere between INR 5000 to 15000, per month, for a shared accommodation, based on location.

Recent years have witnessed, liquidity crisis in the builder communities along with a large number of unsold inventory. This makes the fresh property a risky commodity, as commitments and defaults are rampant. Though RERA is trying to bring things under control; builders still tend to promise benefits, discounts or facilities which they don’t keep later. 

So, what is the way out? If you are going to be placed in Mumbai for a period of more than seven years, it is advisable to invest in your own house. It could be a new, under-construction apartment or a resale property.

What does Resale Property Mean?

A resale property is one that has already moved out of the builder’s hands to the first buyer or subsequent buyers. Buying a house in resale means you buy it from its previous owner. Resale flats that are older have less than 99 years left on the lease.

Who are the Various Operators in this Market?

As a broad overview, you may find only a buyer and a seller in the ecosystem of the market. In a clearer sense, you have the buyer categorized into an end-user, or an investor, a buyer who can look for both residential and commercial property. 

Is it Good to Buy Resale Flats?

Irrespective prices go up or down; prudence requires one not to be getting into the trap of developer / builder. Sound research can help a person find a resale flat as good as the new flat.  The resale flats sometimes are decently maintained compared to new ones. The question now is, whether the low pricing alone can make the resale flats a viable option as compared to new apartments? 

What are the Benefits of Buying a Resale Property?

  • Comparatively cheaper flat

Distress sale can give you a chance to negotiate further with the owner. Almost always you are likely to get a house for much cheaper than new.

  • What you see is what you get! (WYSIWYG)

You won’t have a rude shock or an element of surprise later on. You get a house in the location of your choice. The Area will be fully developed.

  • No need to wait for construction to be completed

 The added advantage here would also be that you won’t need to pay the pre-EMI as well as your rent. One can move into the new house promptly.

  • No additional charges

Since the amount quoted by the seller would include all facilities, no sudden charges will crop up. Whatever extra money flows out will be according to your requirements like refurbishing or any structural changes you want to undertake.

  • Other financial benefits.

You are eligible for a home loan for resale property and you can avail tax benefits too. You may need to pay less premium for home insurance if you get the property at a good price.

Are there Any Disadvantages?

There would be some issues that you need to ascertain before you make a decision. Here are the points that you would need to look into.

  • Very old construction

If the house you are finalizing is structurally weak, it will need repairs. You may also be ineligible for insurance, in that case.

  • Down payment

In most resale houses, down payment would be quite a hefty amount. Some people may even demand part of it in cash.

  • Dues of the owner

You will need to check up on this very carefully before the deal is finalized. Check with the society or association to have a clear picture.

Is the Current Market Appropriate for Buying as an Investor?

Take a look at Mumbai. The city is broadly divided into residential sub-parts. 

The western suburbs have the maximum influx of people with a huge demand for property. On the other hand, the harbor and the Navi Mumbai zones have come up with a well-planned infrastructure. Central suburbs also are coming up with major structural changes with metro-rail and mono-rail helping the connectivity. 

Even as an investor, you would be gaining by investing in a resale apartment.


In a city like Mumbai, a resale apartment is a smart option. It has fewer hassles and many advantages.

As a buyer, if you have been careful about the age of the property, amenities, property valuation, mortgage, brokerage, etc., you might have actually hit a jackpot for your family. 

A buyer is expected to consider various options based on the location of the workplace, commuting time and options available, facilities and services available near home and expected infrastructure.

What better than to decide to put down your roots at a convenient place that caters to all your needs at a cost that you can bear? You will have a house that gives you comfort, happiness and mental peace. 

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