When it comes to selling a flat or house, property age is one of the biggest factors influencing resale price. Many buyers don’t realise how sharply depreciation can affect older homes, especially in urban markets. Here’s a simple breakdown:
How Property Age Impacts Resale Value
1. 0-5 Years Old: Highest Resale Demand
- Modern layouts, better amenities, and minimal maintenance issues.
- Buyers perceive it as “almost new,” so resale value stays strong.
- Typical depreciation: 0–10% from original purchase cost.
2. 5-10 Years Old: Balanced Value
- Still considered relatively new.
- But wear and tear begins to show (painting, plumbing, fixtures).
- Depreciation increases to around 10–20%.
3️. 10-20 Years Old: Noticeable Drop in Value
This is where resale gets challenging for many owners:
- Older construction standards
- Dated interiors
- Society maintenance and lifts often age
- Many buyers expect renovation costs
Resale depreciation: 20–40%, depending on location and upkeep.
4. 20+ Years Old: Sharpest Decline
- Buyers often factor in major repairs (waterproofing, piping, electrical rewiring).
- Banks may hesitate on home loans for very old buildings.
- Redevelopment possibilities can be a plus, but not guaranteed.
Depreciation can range 35-60%.
How Property Resale Value Is Calculated
While there's no universal formula, resale value generally depends on:
- Location (60% weightage): Prime areas retain value better even for older buildings.
- Property Age (20–30%): Direct correlation: older the property, lower the resale price.
- Condition & Maintenance (10–15%): A well-maintained 15-year-old flat can sometimes sell better than a poorly maintained 8-year-old one.
- Amenities & Society Infrastructure (5–10%): Lifts, parking, security, and overall upkeep matter.
- Legal / Loan Eligibility: Banks usually prefer buildings less than 30 years old for home loans, affecting buyer interest.
