Survey says only 10% showed interest in newly-launched projects
Forty-seven per cent of home buyers in Mumbai prefer readyto-move-in houses. Factors such as lower risk, no goods and services tax (GST), and rapidly shrinking gap between prices of ready-to-movein homes and under-construction projects have driven the sentiment in favour of completed projects, indicated a recently released survey across seven top cities by Anarock Property Consultants on consumer sentiments.
The survey, based on an online sample size of 2,621 respondents across seven top cities, showed that 49 per cent of those surveyed preferred to invest in ready-to-move-in homes. In Mumbai, 47 per cent of respondents gave their preference to such homes, 27 per cent preferred homes which would be ready within next six months, 16 per cent preferred flats that would be ready within next one year and only 10 per cent showed interest in newlylaunched projects, the report said.
Among Non-Resident Indians, 39 per cent respondents preferred readyto-move-in homes, 22 per cent preferred flats that would be ready within next six months, 19 per cent showed interest in flats to be ready within next one year, and 22 per cent opted for newly launched units, the report said.
“In a significant trend witnessed in the Indian real estate market recently, demand for new launches has almost ceased to exist in most cities across the country. Ready-to-move-in property has become the flavour of the season with buyers preferring to see what they get. More so, buyers prefer to stay away from risks associated with newly launched projects including incessant delays, few developers claiming bankruptcy or even carrying on with unscrupulous activities, etc. And, with home loan interest rates at an all-time low, most prefer to pay their EMIs while staying in the property of their choice,” the report said.
According to the report, over 4.25 lakh units, launched from 2013 onwards, are presently ready-to-movein across top seven cities, while 5.75 lakh under-construction units, launched from 2013 onwards, have been delayed as per Anarock data.
Anuj Puri, chairman Anarock Property Consultants, said “Ready-tomove in properties offer a good value proposition for cautious homebuyers, and are doubtlessly the least risky at the current time. Not only do they offer instant gratification and a what-yousee-is-what-you-get assurance, they also do not attract GST. Under-construction properties do fall under the purview of GST, which is levied at a massive 12 per cent of the base cost of a property.”