Ready to move in? Not quite
Well, the real estate market is improving and potential home-buyers have regained confidence. But if you think that all you need to do to own a home is just whisk a signed cheque and walk in to your brand new flat, you are quite mistaken. If real estate experts and a recent survey by Makaan.com are to be believed, there are not enough ready-for-pos-session flats to cater to the slowly improving demand this festive season.
An interesting finding in The Real Picture, a recent survey conducted by Makaan.com, shows that though there is a strong movement in the real estate market, home seekers are going to get to step in their new homes only after two-three years time. Why? Answers Aditya Verma, business head and vice president, Makaan.com, "Because most new developments are sold out and buyers have only one option for investment — buying in under construction projects." This survey was conducted by Makaan.com in leading national metros and tier II cities on their portal from August ll to August 20 and saw participation from over 3200 brokers/realtors.
Kaizad Hateria, general manager - marketing and sales, Keystone Group, also confirms. "It is true that there are hardly any ready-for-pos-session flats in the market. Out of 100 flats, you will probably get one flat available for moving in. But this is so because there's a cost to acquiring customers and developers don't want to lose out on the market share. So they prefer to get their flats booked as early as possible. If they don't have a product available, the buyer will go to someone else who has it," says Hateria. Buying under-construction also has its advantages: cost benefits for buyers and inventory clearance for sellers.
"Every buyer today knows that the closer the project is to the ground level, the cheaper it is. And so buyers lap up the opportunity to invest in under-construction projects. Seventy-five per cent of the sales happen even before the foundation of the building is laid. For example, in our Thane project, we managed to sell out 200 flats just by word-of-mouth," adds Hateria. So if you are hunting for a ready-for-possession home, you will either have to pay through your nose or approach a broker to find a resale flat. Chetan Salvi, a home seeker, who's on the house-hunt for the last three months, points out, "I have been looking for a flat in the Andheri to Borivali stretch, but the waiting period is around one-and-half to two years. When it comes to buying resale property, the loan component is also at risk and the whole deal becomes unaffordable." Hopefully, developers will want to cash in on the festive period by offer- ing irresistible offers and better pricing. So if you have been deciding to make a home purchase this Diwali, be prepared to be patient for a couple of years. After all, patience has its own reward.