Ready To Move-In Scenario
The Increasing Demand
In Delhi NCR, about 49% prefer ready-to-move-in properties while 35% are looking to buy property which will be in ready-to-move-in stage within the next six months. Also, 11% favoured those properties that will be ready within a year and only 5% buyers want to put their money in newly launched projects.
A Comparison with Under-Construction Developments
Instant gratification: Projects in the under-construction segment in the NCR are far from completion the market in Delhi-NCR has been affected by defaults and delays in deliveries of projects.
No risk of delay: Buyers have to wait a few years to get possession of under-construction homes. Their money can get stuck if the builder defaults on payments, suffers a financial crunch or is unable to complete the project on time. For a ready-to-move-in property, all is required is to make the payment, sign a few documents, and get your luggage transported to the new place.
What you see is what you get: When you buy a completed project, doubts about the aesthetics, size of rooms, space, construction quality, fixtures and other issues are eliminated. A ready-to-move-in flat allows you to closely inspect the structure and quality of finish. And when you buy an underconstruction flat, you are only shown sample flats and the one you will eventually move into may not have the same qualities.
No GST: Currently, a buyer does not pay any GST while purchasing an RTM property. An underconstruction flat, on the other hand, presently attracts 12% GST.
Narrowing Price Margin: The price margin between ready and under-construction properties has narrowed down significantly because of the humungous unsold stock in most cities. Even if a ready-to-movein property costs slightly more, its value is assured.
Immediate fit-outs: Home buyers can budget the interior decoration, painting and installation of essential electric and plumbing fittings immediately and do not have to keep the necessary funds in reserve. In the case of a property under construction, such funds may be consumed by other requirements by the time the property is handed over.
Buyer Apartment Preference
‘Small is beautiful’ is the new buzzword with Indian millennials in major cities like MMR, Bengaluru, NCR and even Chennai. The young professionals prefer to live close to their workplaces so that their daily commute is reduced, and work-life balance is maintained. Additionally, besides keeping the ‘affordability’ quotient in mind, the so-called millennials prefer to keep it small and avoid maintenance hassles of large homes along with the high cost attached to maintaining it.