Are Home Buyers Keen on Ready-to-Occupy Flats?

Bangalore:  In today’s scenario of the Indian real estate market, the question that arises is, whether potential buyers are eager to buy ready-to-occupy flats or do they prefer to wait for the projects? In which they have to wait for long to get possession, reports Vivek Shukla of TNN.

Samir Jasuja, the Chief Executive Officer of PropEquity is of the opinion that "Generally, end users hoping to buy their first house look for ready-to-occupy apartments, as this will save them from the rental payments of their current accommodation. However, from an investor's point of view, ready-to-occupy flats would fetch lower returns on investment vis-a-vis flats under construction, even though there are far lesser risks associated with the first option," reports ET.

"On the other hand, there are several risks associated with a new project that is under construction like delays, price escalations, variance from the planned layout, etc. But these risks come with higher probability of returns on their investments, and in several cases investors or second-home buyers look for properties under construction for higher returns," says Jasuja.

Moreover, the real estate market scenario is not the same like before, now potential buyers make thorough research in this sector for safe and productive landing, hence they check with real estate firms, builders and past projects of builders, before they make any investment, says Devinder Gupta of DGS Realtors. He further added that, although buyers prefer ready-to-occupy flats, they are also open for projects which might take long time to get possession, provided they are satisfied with the builder working on the project, quality of the ongoing project as well as the amenities provided.

According to Anuj Goel, the executive director of KDP Infrastructure stated that ready-to-occupy flats are preferred the most. "If it is an investor, the flat yields an immediate income of rent from the new flat. If it is an end user, he does not have to pay rent as he gets immediate possession of the new flat and only pays EMI on his loan. Further, investors and end users see a developed and completed project without any confusion on the final outcome of the project," says Goel, reports ET.