Ready-possession Vs Under-construction: Why ready possession homes win


While the cost of a ready-to-move-in home may be higher than an under-construction one, this difference can largely be compensated by the advantages of a ready house

It is no secret that ready-possession projects or projects nearing completion are costlier than under-construction projects. Nevertheless, many buyers are eager to acquire property on an immediate basis rather than waiting. There are sound reasons behind such a decision.

 

Cost difference

The real estate sector has gone through a downturn over the last couple of years, resulting in a few new launches, price reductions and high unsold inventory. This has prompted developers to offer attractive deals, discounts and freebies, to attract buyers of ready-to-move properties. Therefore, it makes sense for buyers to invest in a ready-possession project, rather than wait for a new project to come up over a period of time. Also, prices are beginning to rise again and the market is looking up. Consequently, this is the best time to invest in property, and a property that is ready for possession, obviously has great appeal.

 

Cost of rentals

Most people buy their homes with bank loans and it becomes costly, for them to keep paying EMIs as well as the rentals, till the builders complete their project and hand over the house keys. Paying a little bit extra to acquire a house right away, is cheaper than paying rentals over a period of time.

 

Rental income potential

A lot of investors buy houses, with the objective of earning rental income or re-selling them to earn profits. Purchasing a property in a completed project, helps them to start earning rentals immediately, rather than waiting a few years and locking their money in a non-income generating project.

See also: The financial benefits of buying a ready-to-move property vs an under construction one

 

Security

The real estate sector is still fragmented, and there are a lot of fly-by-night operators, who dupe unwary buyers and investors by collecting the initial sums and then vanishing. In these uncertain times, people want security and assured returns and finished projects offer them this stability and safety.

 

Uncertain delivery timelines

Unfortunately, delays in delivery of projects have been on a consistent rise, owing to various factors plaguing the real estate sector. This directly impacts the financial burden on a buyer, for whom the uncertainty costs a lot of money. Also, the extended periods of EMIs and other expenses take a toll. Therefore, it makes more sense, for buyers to invest in completed projects, rather than ones that are mid-way or about to begin.

 

Uncertain support infrastructure

A lot of new projects are coming up in the vicinity of major cities, where the supporting infrastructure like roads, electricity, water connection, etc., are not developed. This puts off the buyers, who want to move into their new homes and also derive the benefit of ready infrastructure, instead of waiting for basic amenities to be provided to them.

 

Mumbai residential projects’ status

DeveloperProjectLocationStatus
OmkarOmkar Alta MonteMalad eastReady possession
IndiabullsIndiabulls SKYElphinstoneReady possession
KalpataruKalpataru SparkleBKCReady possession
KalpataruKalpataru HorizonWorliReady possession
AhujaAhuja TowersPrabhadeviReady possession
Shivalik DevelopersVision CrestDadarReady possession
ShethBeaumontePrabhadeviReady possession
RahejaRaheja Vivarea (Tower A, B, C)MahalaxmiReady possession
Ashford ConstructionsAshford PalazzoBreach CandyReady possession
Soham GroupSohamNapeansea RoadReady possession
Vijay GroupVijay ResidencyThanePossession within 6 months
Lodha GroupLodha GrandeThanePossession within 6 months
JVMPlatinum HeritageThanePossession within 6 months
Acme GroupAcme OzoneThanePossession within 6 months
LarkinsPride PalmsThanePossession within 6 months
Paradise GroupSai MannatKhargharPossession within 6 months
MarathonMarathon NexzonePanvelPossession within 6 months
GoodwillGoodwill PridePanvelPossession within 6 months
RunwalRunwal GreensMulundPossession within 6 months
RomellRomell GrandeurGoregaon eastPossession within 6 months
RahejaRaheja RidgewoodGoregaon eastPossession within 6 months
Lodha GroupLodha FiorenzaGoregaon eastPossession within 6 months
RunwalRunwal ReserveWorliPossession within 6 months
Lodha GroupLodha World CrestLower ParelPossession within 6 months
One Avighna GroupOne Avighna ParkLower ParelPossession within 6 months
EktaEkta InvictusDadarPossession within 6 months
BenchmarkSolusBandraPossession within 6 months
Lodha GroupLodha LuxuriaThaneReady possession/ Possession within 6 months
RadiusRadius Imperial HeightsOshiwaraReady possession/ Possession within 6 months
ShethSheth Vasant OasisAndheri eastReady possession/ Possession within 6 months
Lodha GroupLodha EternisAndheri eastReady possession/ Possession within 6 months

(The writer is CEO – residential services, JLL India)

 

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