Older Apartments Versus New Projects Which Offers Better Returns For Property Investors

A Bengaluru resident recently sparked a debate on whether older apartments offer better investment value than newly launched projects. The user argued that 15-20-year-old apartments often yield around 4% or more, compared to 2-3% for many new developments. A Bengaluru resident recently sparked a debate on whether older apartments offer better investment value than newly launched projects. The user argued that 15-20-year-old apartments often yield around 4% or more, compared to 2-3% for many new developments. Established neighbourhoods, lower vacancy risks and greater room for price negotiation were cited as additional advantages. “...rental yield on older apartments seems higher. Around 4% in some cases. Plus the area is already developed, so vacancy is low. I also feel it’s easier to negotiate a better deal with resale owners. Newer projects on the other hand are giving 2 to 3% rental at best. And prices are honestly crazy even for category B builders,” the Reddit post said, The discussion prompted a broader question: if older apartments deliver stronger rental returns, why do investors continue to favour new launches despite soaring property prices? Several participants agreed that older apartments can offer superior rental yields because their purchase prices are relatively lower while rental demand remains stable in established localities. Others pointed out that older projects are often located in mature neighbourhoods with better social infrastructure, public transport connectivity, schools, hospitals and commercial hubs. These factors can help keep vacancy levels low and sustain rental demand. Some users noted that older apartments are usually available at a discount compared to new projects and often come with well-established resident communities. However, the lower entry price may be offset by maintenance concerns. Older buildings can require repairs, upgrades and higher upkeep costs over time. Buyers may also encounter issues with plumbing, electrical systems, elevators, and common infrastructure. Also Read: Bengaluru tenant questions ₹48,000 security deposit deduction for painting, deep cleaning; Redditors call it ‘extortion’ “Older apartments will have issues and upgrades to work through, but the location will be relatively prime with better public access/infra,” a Redditor said. “Older apartments usually cost less and may have strong communities already formed, but they can have hidden maintenance issues. New apartments come with modern design, amenities, and fewer immediate repairs. If resale or rental matters, newer well-maintained projects closer to transit and jobs usually hold value better,” the post noted. Another advantage frequently associated with older apartments is redevelopment. As buildings age, redevelopment opportunities can emerge, particularly in land-constrained markets. Redevelopment projects can significantly enhance property values by providing larger homes, modern amenities and additional compensation to existing owners. For some investors, redevelopment potential forms an important part of the investment thesis when purchasing older properties, the post noted. “Yes, by what I understand (may be wrong) , the resale value of older properties stagnate and hence you may find it a little economical buying those, given you are ready to pay for the regular maintenence cost. Also older building go into redevelopment at some point of time