The real estate buyers seem to swing between wanting to buy under-construction properties to completed ones. In certain locations, builders find it hard to sell under-construction projects and in others, they are in high demand. But if you observe the overall trend, you will notice that buyers in India are generally more in favor of buying real estate properties, especially residential properties that are under-construction.
The reputation of the builder and his delivery of previous projects is the first factor that the buyer would consider before investing into an under-construction property. If this criterion is satisfied then the buyer would look at other factors like location, price and other aspect of construction.
Aside from the above, here are a few reasons why buyers of residential properties prefer under-construction properties:
Lower Cost
When the property is under-construction or just launching it tends to cost lesser than buying a completed project. The final price can be negotiated with the builder thus giving the buyer an opportunity to get the best deal. There will be discounts and special offers that buyers can avail during this period to purchase their homes. Also, many times the banks involved also give waivers on processing charges at the launch or under-construction period of the property. With RERA in place, there is a greater security about completion of project and on-time delivery by the builder thus making under-construction properties more attractive.
Higher Appreciation
Since you buy the property at a lower price, the appreciation is much higher from the time you take possession of the property. As the construction progress the price of the property also grows. Compared to the ready to occupy properties, the quantum of price increase from an under-construction property is much higher. This makes it a smarter investment.
Payment Flexibility
When you buy a property that is under-construction, you get a staggered payment option. Buyers pay around 10-15% as the booking amount and then in similar instalments they can pay the remaining amount of money as the construction progresses. This flexibility in payment terms allows the buyers more time to work out their finances instead of paying up a huge sum of money at a single time.
New Construction
Under-construction properties offer you a new home with a longer property life. Ready-to-occupy may require repairs and remodelling that will be an extra cost burden in comparison to the under-construction property options. The amenities at a newer property are also updated and current in comparison to an older property. The moment you get possession, you can start living in the apartment without waiting for repairs or restoration work to be done.
Ease of Customization
Everyone wants their homes to be customized to their needs and tastes. It is easier to make big customization changes that require masonry work at the time of construction instead of trying to do them in a completed property. The cost of customization for an under-construction property is lower than for a completed project. Also, there will be many restrictions for renovations for a completed project in comparison to an under-construction property.
The under-construction projects definitely offer a better appreciation, flexibility and comfort in comparison to the ready-to-occupy properties.
