Due to delays in the completion of housing projects and the default of builders, home buyers are now more likely to buy ready-to-move apartments instead of under-construction properties. This trend is a sign that people now want the certainty of ready real estate projects and there is not much interest in the under-construction apartments, which facilitate their deferred payment.
In view of this, realty companies are also focusing on selling their finished projects and finalizing almost completed projects. There is no emphasis on launching new projects for these companies right now. Real estate companies such as Hiranandani Group, Tata Housing, Lodha Developers, Emmar India and Prestige Estates are benefiting from this because buyers of ready-made apartments have increased.
Hiranandani Group’s CMD, Niranjan Hiranandani said, “For the last two quarters of the Ready To Move Properties, it has been quite good since there is no GST on it and they follow the Occupational Certificate (OC). We have sold around 200 units in our Thane project. Response is good because home buyers are choosing more such apartments in view of uncertainty in the market. There is also no problem related to RERA and GST. ‘
Under-Construction Realty Projects with no Occupational Certificate are required to be registered under the Real Estate (Regulation and Development) Act (RERA), 2016. These projects also have 12 percent GST.
Pankaj Kapoor, managing director of Liases Foras Real Estate Rating and Research, said: “The proportion of ready-to-move apartments has increased to 15% compared to the total properties in the builders’ portfolio, which was 5% in the previous year. Home buyers ‘response to these apartments is much better than under-construction projects.’
Investors who are investing their excess liquidity in the property market are now disappearing because the regulatory rigidity has increased and apart from this, investors are now getting better returns from the stock market. Emmar India CEO, Sanjay Malhotra said, “In recent years, demand and end users in the residential realty market have been more than home buyers.
Developers have a large number of projects that are ready for delivery in near future and for this reason, home buyers are showing more interest in ready-to-move or almost completed projects. There is no problem with delivery with these projects. ‘ Emmar India is focusing on completing all its current projects. The company’s plan is to deliver more than 11,000 units till March 2019.