Ready-possession Vs Under-construction: Why ready possession homes win

It is no secret that ready-possession projects or projects nearing completion are costlier than under-construction projects. Nevertheless, many buyers are eager to acquire property on an immediate basis rather than waiting. There are sound reasons behind such a decision.
Cost difference The real estate sector has gone through a downturn over the last couple of years, resulting in a few new launches, price reductions and high unsold inventory. This has prompted developers to offer attractive deals, discounts and freebies, to attract buyers of ready-to-move properties. Therefore, it makes sense for buyers to invest in a ready-possession project, rather than wait for a new project to come up over a period of time. Also, prices are beginning to rise again and the market is looking up. Consequently, this is the best time to invest in property, and a property that is ready for possession, obviously has great appeal.
Cost of rentals Most people buy their homes with bank loans and it becomes costly, for them to keep paying EMIs as well as the rentals, till the builders complete their project and hand over the house keys. Paying a little bit extra to acquire a house right away, is cheaper than paying rentals over a period of time.
Rental income potential A lot of investors buy houses, with the objective of earning rental income or re-selling them to earn profits. Purchasing a property in a completed project, helps them to start earning rentals immediately, rather than waiting a few years and locking their money in a non-income generating project.
See also: The financial benefits of buying a ready-to-move property vs an under construction one
Security The real estate sector is still fragmented, and there are a lot of fly-by-night operators, who dupe unwary buyers and investors by collecting the initial sums and then vanishing. In these uncertain times, people want security and assured returns and finished projects offer them this stability and safety.
Uncertain delivery timelines Unfortunately, delays in delivery of projects have been on a consistent rise, owing to various factors plaguing the real estate sector. This directly impacts the financial burden on a buyer, for whom the uncertainty costs a lot of money. Also, the extended periods of EMIs and other expenses take a toll. Therefore, it makes more sense, for buyers to invest in completed projects, rather than ones that are mid-way or about to begin.
Uncertain support infrastructure A lot of new projects are coming up in the vicinity of major cities, where the supporting infrastructure like roads, electricity, water connection, etc., are not developed. This puts off the buyers, who want to move into their new homes and also derive the benefit of ready infrastructure, instead of waiting for basic amenities to be provided to them.
Mumbai residential projects’ status Developer Project Location Status Omkar Omkar Alta Monte Malad east Ready possession Indiabulls Indiabulls SKY Elphinstone Ready possession Kalpataru Kalpataru Sparkle BKC Ready possession Kalpataru Kalpataru Horizon Worli Ready possession Ahuja Ahuja Towers Prabhadevi Ready possession Shivalik Developers Vision Crest Dadar Ready possession Sheth Beaumonte Prabhadevi Ready possession Raheja Raheja Vivarea (Tower A, B, C) Mahalaxmi Ready possession Ashford Constructions Ashford Palazzo Breach Candy Ready possession Soham Group Soham Napeansea Road Ready possession Vijay Group Vijay Residency Thane Possession within 6 months Lodha Group Lodha Grande Thane Possession within 6 months JVM Platinum Heritage Thane Possession within 6 months Acme Group Acme Ozone Thane Possession within 6 months Larkins Pride Palms Thane Possession within 6 months Paradise Group Sai Mannat Kharghar Possession within 6 months Marathon Marathon Nexzone Panvel Possession within 6 months Goodwill Goodwill Pride Panvel Possession within 6 months Runwal Runwal Greens Mulund Possession within 6 months Romell Romell Grandeur Goregaon east Possession within 6 months Raheja Raheja Ridgewood Goregaon east Possession within 6 months Lodha Group Lodha Fiorenza Goregaon east Possession within 6 months Runwal Runwal Reserve Worli Possession within 6 months Lodha Group Lodha World Crest Lower Parel Possession within 6 months One Avighna Group One Avighna Park Lower Parel Possession within 6 months Ekta Ekta Invictus Dadar Possession within 6 months Benchmark Solus Bandra Possession within 6 months Lodha Group Lodha Luxuria Thane Ready possession/ Possession within 6 months Radius Radius Imperial Heights Oshiwara Ready possession/ Possession within 6 months Sheth Sheth Vasant Oasis Andheri east Ready possession/ Possession within 6 months Lodha Group Lodha Eternis Andheri east Ready possession/ Possession within 6 months (The writer is CEO – residential services, JLL India)
By: Housing.com/news