The preference for ready-to-move-in apartments in the backdrop of fears over deliveries is forcing realty developers to tweak their offerings to attract home buyers to such projects.
Ready apartments are emerging as the only other segment apart from affordable housing projects that are clicking with home buyers. The combination of affordable and ready-to-move-in apartments is offering further traction in sales.
In a significant trend seen in Indian real estate over the past few years, ready-to-move-in properties are seen as a good value proposition for discerning home buyers as they get to buy what they see. Also, it helps mitigate risks associated with new projects including incessant delays, unscrupulous activities of few developers, etc. The biggest benefit for home buyers is that ready units do not attract the GST.
From the demand perspective, as per ANAROCK Property Consultants’ consumer sentiment survey for the first half of 2019, a good 36% prospective buyers preferred ready-to-move-in properties, followed by 24% who wanted a property that will be ready within the next 6 months.
“Interestingly, if city-wise data is considered, at least 56% prospective buyers in NCR preferred ready properties over under-construction ones because it is here where consumer confidence is the least,” said Anuj Puri, chairman, ANAROCK Property Consultants.
Developers are aware of the changing market preference and are looking to make most of this new trend. Builders such as Puravankara, Sobha Prestige, and Shriram Properties are offering a minimum guarantee of 9%, virtual cash, free kitchen, deferred payment schemes, assured rent and no floor rise among others on their ready-to-move inventory too, while several others are providing a superior customer experience for the improved word of mouth.
"The interest of buyers for ready apartments can be attributed to the fact that they do not have to pay any GST, investing in them is the most secure option and they can actually experience the project as all amenities are in place.
“We are offering easy payment plans spread over two years for premium and luxury properties. We are also focusing on generating references from our existing customers, who have experienced transformation in their quality of life after moving to these properties," said Sanjay Daga, COO, Runwal Developers.
Daga further said the company is getting an increased response to ready-to-move-in apartments across various segments — from affordable housing to luxury category.
The Indian festive season, ushered in by the Ganesh Chaturthi, has begun and investment decisions are being made. For home buyers, this period is both auspicious and opportune to buy homes because real estate developers inevitably offer attractive incentives.
“There’s a huge demand for ready apartments. We have seen 40% of our residential sales coming from such properties,” said Ashish R Puravankara, MD, Puravankara.
Traditionally, the festive quarter fares better than the previous quarters of the year when it comes to housing sales — the combination of religious sentiment and festive deals and freebies is a potent mix during this part of the year.
For instance, the fourth quarter of 2015 saw 70,000 homes sold in seven major cities during the festive season, but the sector is not out of the woods yet. “The Indian real estate sector is still crippled by the economic slowdown, and the unsold inventory of 6.65 lakh units across seven cities remains a tough reality, ” said ANAROCK Research.
News Source: Economic Times, Url: https://bit.ly/2oLdWnw