Ready to move in homes are in high demand. Homebuyers are ready to pay more for ready to move in homes too.
By Varun Singh
Recently in Navi Mumbai, a real estate deal took place, where the buyer paid for a house, in spite of a cheaper one available within the vicinity.
The reason behind the homebuyer spending more claims Manohar Shroff, a developer from Navi Mumbai says is the house was a RTMI.
Homebuyers are inclined towards, ready to move in homes (RTMI) over under construction homes.
Shroff says, “There were two homes available, one was for Rs 80 lakh, while the other for Rs 85 lakh. The Buyer went with the costlier one, because it was RTMI and the cheaper was under construction.”
Homebuyers are opting for homes where they can move in, the reason Syed Shakir, who has spent 20-years into real estate says is safe investment.
“Homebuyers do not mind paying more when it is a RTMI because of the less risk associated with it. In under construction, there are many stories about projects getting delayed. So when there’s an option available, the homebuyer will go for a RTMI by paying more,” said Shakir.
Recently a report released by JLL, also claimed the quarter saw a preference for ready-to-move-in projects by reputed developers.
The real estate market has started looking upwards. September saw a jump in 112% of sale registration in Mumbai compared to August.
“The further easing of lockdown restrictions and the upcoming festive season might help in bringing buyers back to the market. An assessment of years to sell reveals that the expected time to liquidate stock has increased from 3.6 years in Q2 2020 to 4 years in Q3 2020. While the residential space remains unpredictable, favourable supply dynamics could deliver potential upside for both homebuyers and developers in the medium-term.”
Dr.Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.
Residential market in India, on road to recovery with strong sales
India’s residential market was more active in Q3 2020 with sales increasing by 34% versus Q2 2020.
Mumbai accounted for 29% of the total sales in the quarter, while 22% of sales was contributed by Delhi NCR. Growth in sales activity was also driven by stronger demand in Chennai, Hyderabad and Pune.
Residential market activity is also being supported by renewed interest from NRIs in Q3 2020, resulting in more pent up demand in the market and increased enquiries received by developers.
Also Read: MMR Sold 4% More Homes in Jan-Sep 2020 Than It Did In Same Period OF 2018
