The Time Is Right to Buy A Ready-Possession Flat

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By Kishor Pate, CMD – Amit Enterprises Housing Ltd

Do ready-for-possession or close-to-possession homes make more sense than properties which will be delivered only 2-3 years down the line? There was a time when the answer of most end-users and real estate investors would have been a resounding ‘No’. After all, it is common knowledge that ready-possession homes or homes which would be delivered in six months or less were costing more by about 30-35%. In price-sensitive markets like Pune, paying such a premium merely for the benefit of earlier possession made no sense at all.

The budget constraints of end users aside, even investors would shy away from paying such higher price, since they are obviously focused on entering at the lowest possible point and exiting when the property has appreciated sufficiently. They were certainly not open to foregoing the highest possible returns on investment for ready-possession flats, even if it meant being able to rent them out sooner. After all, the potential resale price would still take a massive beating.

The Current Scenario

Thanks to the protracted slowdown on the property market in most Indian cities, developers across the country have witnessed their inventories piling up. Reduced sales traction has induced a major sea-change in their pricing strategies, resulting in ticket sizes coming down even in ready-to-move properties in their projects. This has proved necessary because selling existing inventory is the only way they can build capital to fund future projects.

In fact, there has never been a time in the history of the Indian real estate market when properties which are ready or close to possession were so cost-effective. The property market has stabilized. Quality properties by reputed developers in very good locations are now available at prices which were previously possible only if buyers were willing to wait for two years or longer.





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