News: Old Flat or New Launch? Reddit Weighs Rental Yield-02-06-2026
A Bengaluru resident’s Reddit post has set off a debate on whether older apartments are a better investment than newly launched projects. The user argued that flats 15-20 years old often yield around 4% or more in rent, against 2 to 3% "at best" for many new developments. Because such areas are already developed, vacancy is low, and resale owners are easier to negotiate with, the post said, adding that prices of new projects are high even for category B builders.
The thread raised a wider question: if older flats earn better rental returns, why do investors still prefer new launches?
The case for older flats
Several participants agreed that older apartments can yield more because they cost less to buy while rental demand in established localities stays stable. Others noted that such projects usually sit in mature neighbourhoods with better social infrastructure, public transport, schools, hospitals and commercial hubs, which keeps vacancies down.
Some users said older flats are typically available at a discount and have settled resident communities. The lower entry price can, however, be offset by upkeep. Ageing buildings may need repairs and upgrades, and buyers can run into problems with plumbing, electrical systems, elevators and common infrastructure. One Redditor said newer, well-maintained projects close to transit and jobs usually hold value better if resale or rental matters.
Redevelopment was cited as another advantage. In land-constrained markets, ageing buildings can be redeveloped, giving owners larger homes, modern amenities and additional compensation. A Redditor said the resale value of older properties tends to stagnate, making them more economical for buyers ready to bear regular maintenance, and that redevelopment later adds considerable value.
On construction quality, some users felt older buildings are often better built than certain newer ones, but stressed that age alone is not decisive. One pointed out that 100-year-old buildings in South Bombay are well maintained, while most buildings built in Mumbai in the 80s are falling apart because of poor quality cement. Quality, the user said, depends on the original construction and on maintenance.
The case for new projects
Supporters of new projects pointed to amenities such as clubhouses, gyms, swimming pools, children’s play areas, EV charging stations and better security. Some users said younger buyers and tenants are increasingly willing to pay a premium for these, which supports both appreciation and rental demand.
One Redditor argued that the real comparison is between basic apartments without a lift, those with a lift and those with facilities. Anyone buying to rent or invest should look at the preferences of the new generation, the user said, since older generations are typically not buyers unless they are downsizing. The post added that appreciation is highest in buildings with facilities and that rental yield rises as value goes up.
What consultants say
Property consultants said resale homes are often cheaper than new launches, come with immediate possession and let buyers assess the condition of the property and the neighbourhood beforehand. Older flats in established locations can be had at a 10-13% discount, with good connectivity and proximity to workplaces, schools and hospitals. Their drawbacks include depreciation, higher maintenance costs, limited amenities, parking constraints and, in some cases, financing hurdles.
New homes generally offer modern layouts, lifestyle amenities, sustainability features and better infrastructure, but command a premium and may carry construction and delivery risks.
Experts said the choice depends on priorities. Buyers who value location and affordability may prefer older homes in established areas, which can bring higher yields, lower acquisition costs and redevelopment potential. Those focused on future growth may find more value in newer developments on the outskirts, which may appreciate better and attract tenants seeking amenities.
This report is based on user-generated content from social media; HT.com has not independently verified the claims and does not endorse them.
