There is no dearth of supply in the residential real estate market across India, both in the ready-to-move-in and under-construction categories, thanks to low sales in the last few years. A report by LiasesForas, a Mumbai-based real estate rating and research firm, states that at the end of first quarter of the financial year 2018-19, there were 945,964 unsold units in 8 tier-I cities including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune. Moreover, considering the sales volume during the quarter, it will take 41 months to clear these inventories, said the report.
If you are looking to buy property immediately then there are plenty of options. But there is merit in choosing a ready to move in property. We list the following benefits.
When you buy a ready-to-move-in house, the biggest risk that you eliminate is project delay. You are not required to wait for the completion of the apartment and other amenities in the project.
While the Real Estate (Regulation and Development) Act (RERA), 2016 has been implemented and developers are expected to adhere to timelines, most developers have listed a deadline of 5-6 years from now for their projects. Typically, the deadline earlier was for three years.
In other words, most developers have already made provision for project delays. Any penalty or compensation under RERA will get implemented only when the developer does not meet the mentioned deadlines.
Uncertainty about space, size of rooms, view from the apartment, and quality of construction, available amenities and fixtures can be eliminated when you buy a ready-to-move-in apartment. “It is important to consider the quality of the project; a ready to move in house project allows one to closely inspect the structure and quality of finish,” said Anshul Jain, country head and managing director, Cushman & Wakefield India.
You can start living in a ready-to-move-in house as soon as you buy it. “For those with an immediate requirement unable to afford both rent and EMIs, a ready-to-move-in home works well,” said Jain.
Though there are benefits of buying a ready-to-move-in apartment, the home buyers might have to shell out a little more on such purchases compared to under-construction ones,” said Jain. However, whether you buy an under-construction or ready-to-move-in property, be sure to do your due diligence regarding the quality of construction, location and surrounding infrastructure.