Under-construction properties have been a preferred choice among Indian homebuyers since the past decade. By investing in an under-construction project, a buyer gets to have a brand-new home for himself, at an affordable rate. The buyer also has a grand platter in front of him to choose from. From an investment point of view also, investing in an under-construction unit is more beneficial as the future prospects of a new property will certainly be brighter.
However, as project delays became a defining feature of India’s real estate sector over the years, under-construction projects begun to lose their popularity among buyers.
Data testify the same.
Data shows sale of ready-to-move in properties kept growing in the first half of the current financial year while the sale of under-construction properties fell during the same period. In the second half of FY17, 16,750 ready-to-move-in units were sold. The number grew to 19,399 in H1 FY18. On the contrary, only 84,408 under-construction properties were sold in H1 FY18 against 94,043 units in H2 FY17. The numbers are based on home sales in nine major cities of the country which include Ahmedabad, Bengaluru, Chennai, Gurgaon (including Bhiwadi, Dharuhera and Sohna), Hyderabad, Kolkata, Mumbai (including Navi Mumbai and Thane), Noida (including Greater Noida and Yamuna Expressway) and Pune. Data also show that even in under-construction units, buyers are more interested in old projects than newly launched ones.
Essentially, any property that is set to give possession within 6 months of Purchase has become a hot favourite.