Ready-to-Move-in Properties: The new trend in the residential real estate sector
Sumit Jain, the Co-founder and CEO of CommonFloor.com has observed an interesting trend over the last one year in the Indian real estate market. There is an increased demand for ready-to-move-in properties. The main factor which is responsible for this rise in demand is the inordinate delay in project delivery. Due to this the home buyer is under an increased pressure of EMIs plus rental values.
This trend is observed in a PAN India basis. While most cities saw a significant increase in the number of ready-to-occupy property listings, MMR (Mumbai Metropolitan Region) and Chennai regions were seen to be more or less stagnant.
In MMR – Mumbai, Thane and Navi Mumbai – property prices have become unaffordable for many. However the markets remained stagnant with minor corrections of up to 5 % in certain localities. Hence the buyers now are waiting and watching. Due to increased input cost and high capital cost due to high interest rates, the developers are reluctant to offer any discount.
In Chennai, the overall economic environment was slow which kept the property listings stagnant over the year.
Bengaluru saw a significant increase in the number of ready-to-occupy property listings. Q1-2014 witnessed an increase of almost 35 % in ready-to-occupy listings as compared to previous quarter (Q3-2013). The developers who had launched the projects hoping that they will be sold before completion did not see the downpour of buyers and there is an ample supply of ready to move in properties.
Surprisingly, NCR has seen about 19 % increase in Q1-2014 as compared to Q3-2013. According to CommonFloor data, several projects have completed over the last one year and there is ample ready-to-occupy supply available in the market. This happened mainly because the investors took the exit router and they released their inventories. Now the developers are offering discounts up to 15-25 % in order to lure the customers.
Source- Media Marketing and More
CommonFloor, Mumbai Metropolitan Region, ready-to-move-in apartments, ready-to-move-in flats, ready-to-occupy property listings, Real-estate market, Sumit Jain, Survey, under-construction properties
