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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.
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.
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
|Omkar||Omkar Alta Monte||Malad east||Ready possession|
|Indiabulls||Indiabulls SKY||Elphinstone||Ready possession|
|Kalpataru||Kalpataru Sparkle||BKC||Ready possession|
|Kalpataru||Kalpataru Horizon||Worli||Ready possession|
|Ahuja||Ahuja Towers||Prabhadevi||Ready possession|
|Shivalik Developers||Vision Crest||Dadar||Ready possession|
|Raheja||Raheja Vivarea (Tower A, B, C)||Mahalaxmi||Ready possession|
|Ashford Constructions||Ashford Palazzo||Breach Candy||Ready possession|
|Soham Group||Soham||Napeansea Road||Ready possession|
|Vijay Group||Vijay Residency||Thane||Possession within 6 months|
|Lodha Group||Lodha Grande||Thane||Possession within 6 months|
|JVM||Platinum Heritage||Thane||Possession within 6 months|
|Acme Group||Acme Ozone||Thane||Possession within 6 months|
|Larkins||Pride Palms||Thane||Possession within 6 months|
|Paradise Group||Sai Mannat||Kharghar||Possession within 6 months|
|Marathon||Marathon Nexzone||Panvel||Possession within 6 months|
|Goodwill||Goodwill Pride||Panvel||Possession within 6 months|
|Runwal||Runwal Greens||Mulund||Possession within 6 months|
|Romell||Romell Grandeur||Goregaon east||Possession within 6 months|
|Raheja||Raheja Ridgewood||Goregaon east||Possession within 6 months|
|Lodha Group||Lodha Fiorenza||Goregaon east||Possession within 6 months|
|Runwal||Runwal Reserve||Worli||Possession within 6 months|
|Lodha Group||Lodha World Crest||Lower Parel||Possession within 6 months|
|One Avighna Group||One Avighna Park||Lower Parel||Possession within 6 months|
|Ekta||Ekta Invictus||Dadar||Possession within 6 months|
|Benchmark||Solus||Bandra||Possession within 6 months|
|Lodha Group||Lodha Luxuria||Thane||Ready possession/ Possession within 6 months|
|Radius||Radius Imperial Heights||Oshiwara||Ready possession/ Possession within 6 months|
|Sheth||Sheth Vasant Oasis||Andheri east||Ready possession/ Possession within 6 months|
|Lodha Group||Lodha Eternis||Andheri east||Ready possession/ Possession within 6 months|
(The writer is CEO – residential services, JLL India)