The price gap between ready-to-move-in (RTM) and under-construction (UC) homes has reduced to a mere 3-5 percent by Q1 2021. In 2017, the difference between the two categories was anywhere between 9-12 percent across cities while in 2018 it was 5-8 percent, an analysis by Anarock Research has said.
NCR and MMR recorded the least price difference between RTM and UC homes at 3 percent. The average prices of RTM homes in NCR were Rs 4,650 per sq. ft. while for UC homes it was Rs 4,500 per sq. ft.; in MMR it stood at Rs 10,700 per sq. ft. and Rs 10,350 per sq. ft. respectively, it said.
In NCR, the price gap in 2017 was 9 percent and as of Q1 2021, it is just 3 percent, the analysis said.
Pune, Hyderabad and Chennai have the highest RTM/UC price difference at approximately 5 percent. In Bengaluru and Kolkata, the difference is just 4 percent.
MMR has seen the highest reduction in the gap over the last four years. In 2017, the gap between RTM and UC homes in MMR was 12 percent - among the highest. Now, in Q1 2021, it has reduced to just 3 percent - the lowest. The average prices of RTM homes were Rs 10,365 per sq. ft. in 2017, those of UC homes it was Rs 9,251 per sq. ft. In Q1 2021, the prices were Rs 10,700 per sq. ft and Rs 10,350 per sq. ft. respectively, it said.
In Bengaluru, the price gap b/w RTM and UC homes was 12 percent; as of Q1 2021 it has shrunk to 4 percent. The average prices of RTM homes were Rs 4,889 per sq. ft. while those of UC was Rs 4,365 per q. ft. In Q1 2021, it is at Rs 5,130 per sq. ft. and Rs 4,910 per sq. ft. respectively, the analysis said.
“Previously, buyers of under-construction homes had one major advantage," says Anuj Puri, Chairman - ANAROCK Property Consultants.
"Their patience and willingness to court construction risk were rewarded by notably lower prices. However, construction delays and stalled projects had a predictable outcome and risk-aversion set in, with demand tilted heavily towards ready properties. While the fact that RTM homes do not attract GST has been an added attraction, even the price gap between RTM and UC homes has eroded substantially - from 9-12 percent in 2017 to just 3-5 percent by Q1 2021,” he added.