From ET Realty
NEW DELHI: Ready to move in homes are priced 5% higher over their under construction peers, with Greater Noida commanding the highest difference in price of 21%, according to report by a realty portal.
Thane comes a close second, with 19% difference in price between ready to move in and under construction properties during October to December last year, followed by Mumbai at 18%, Gurgaon at 13%, Noida at 12% and Navi Mumbai and Bengaluru at 6% each.
“One of the biggest challenges in the current real estate market is lack of consumer confidence in developers to deliver the projects on time. This is reflected in the price differential between Under Construction and Ready-to-Move-in properties in the secondary/resale real estate market,” said E Jayashree Kurup, Head of Content & Research at a real estate protal
Chennai, Ahmedabad and Hyderabad are the only exceptions where ready to move in properties are priced lower than under construction properties. Even in case of these cities, ready to move in properties are at a premium in those localities with large scale development and which provide both the options.
Gachibowli, Madhapur, Kukatpally Housing Board and Manikonda in Hyderabad, and Pallavaram, Tambaram, Pallikarnai, Perumbakkam, Padur, Kolathur, Guduvancherry and Avadi in Chennai still command high pricing for ready to move in properties.
In terms of price appreciation over a two-year period also, the relative performance of the ready to move in properties have been better than the unfinished ones in 9 out of 14 cities under consideration.
Chennai remains the biggest exception as under construction properties in more established localities which are contiguous with the core city area are preferred by consumers.
According to Kurup, a consumer is looking at the development and possession time-lines of the project and the project delivery track record of the developer, more than price cut. “Even if a property comes at a discount but does not address these concerns, it is unlikely to get traction in the market,” she said.
The report covers the quarterly price movement in the secondary/resale real estate market for the October to December period last year across top 14 cities.