According to Collins dictionary, ready-to-move connotation has multiple meanings viz., set, arranged, completed, fit, in readiness, organized, prepared, equipped, furnished, et.al. The term ready-to-move-in refers to a house or property that is ready for immediate occupancy. A property in this condition must meet all requirements by the city likely its social infrastructure or governing municipality as a habitable dwelling.
The trend of ready-to-move –in apartments has seen a sudden emergence and becoming preference area for today’s home buyers for the following few important reasons. These could be long wait towards completion of the project a common occurrence among many unknown and few known developers due to lack of funds towards completing the project. Secondly, the rising pressure of EMIs which does not stop if a project gets delayed or stalled. The buyer gets stuck in the vicious circle of a difficulty of cash flows due to slow sales, banks not lending, private equity money not coming in and non-banking financial institutions are steadily reducing exposure. Third long delays also reduce tax deduction available on loan repayments. No possession means no tax benefit on the home loan. The buyer of today lost all the confidence of getting possession of their investment on time, the situation arising out of fly-by-night operators, not reputed developers.
The government has taken strides towards making the functioning of Indian real estate more responsible by way of The Land Acquisition, Rehabilitation & Resettlement (LARR) Act, the Real Estate Regulatory Act (RERA), REITs and the Goods & Services Tax which will address the issue of delays in completion of projects. However, remember the saying dil hai ke manta nahin or to be more precise maan hai ki manta nahin that developer will hand over their homes on time.
So, what is the incentive for the buyer to go and invest in a project which is on-going? Why should an investor not go for a safer bet that being ready-to-move-in flats?
All this situation has resulted in a new trend in the Indian real estate which is the ready-to-move-in flats which is seeing a tremendous demand in larger cities like Mumbai, Delhi, Banglore, Gurgaon, Noida as well as tier 1 and 2 cities, where developers are offering ready-to-move-in apartments in their projects clubbed with additional offers.
Today, ready-to-move-in properties are at a premium to under-construction properties in spite of large-scale development and providing both the options. Consumers are opting for the option with less development risk in such localities.
Ready-to-move-in properties in Greater Noida, Gurgaon, Kolkata, Banglore are seeing a rising demand from 12% to 21% to move in ready flats against those under construction. Chennai, Hyderabad, Ahmedabad is also slowly witnessing the change in going for ready apartments witnessing positive growth against under-construction which is seeing a negative growth.
In a case of Mumbai, ready-to-move-in properties are seeing rising demand in terms of overall product on offer in terms of locality, price, amenities, surrounding infrastructure, connectivity etc. This holds true especially for the western and eastern suburban localities and those further north demanding a somewhat premium against those under construction properties. Dehli and its peripheral areas the trend for ready-to-move apartments in developments nearing completion has seen a healthy growth against as under-construction properties due to the delays in completion of many projects. Same is the trend in many cities with consumers not wanting to take a developmental risk.
If Mumbai is the indicator of changing trend then this city is seeing an incidence of rising demand for ready-to-move-in developments largely in its suburbs from Bandra to Dahisar on West corridor and Sion to Thane in the eastern corridor. Developers like Kalpataru, Oberoi, Lodha, Mantri, Omkar Realtors, Dheeraj, Runwal, Godrej, HDIL, Raheja, Kanakia, Radius, Hiranandani, Marathon and many other reputed names are offering ready-to-move-in concepts in their developments. Reason being that today, with more than approx. 25% customers intending to buy ready-to-move apartments only, delivery timelines has become a key for developers to catch this vital faction.
With South, Mumbai continuing to face a space crunch and the western and eastern suburbs is seeing an emergence of newer business hubs and micro markets like Mulund, Kurla, Vikhroli, Goregaon East, Powai, Andheri East, Malad East, BKC. All these so called newer micro markets have emerged as attractive residential hot-spots for quality lifestyle housing and easy accessibility factors along with great workplace options. With government major focus being on making the newer micro markets well connected with road and rail network for easy and faster travel from home to the workplace.
Mumbai has seen developments be it monorail, metro rail, SCLR, JVLR, Eastern Freeway, Terminal 2, Bandra Worli Sea link which has resulted in larger connectivity to newer micro markets. With new future developments such as Mumbai coastal road, Mumbai trans-harbour link, Mulund Goregaon Link Road, new Mumbai metro corridor – Cuffe Parade to SEEPZ and Dahisar to DN Nagar, Dahisar east to Andheri east will result in faster commuting to all these areas resulting in increased residential and high quality social infrastructure developments in all the new micro-markets of Mumbai suburbs.
With all these developments in Mumbai increased opportunities are knocking the doors of working class to move into newer micro markets resulting into the rising need and preference for ‘ready-to-move-in’ home among the young, professionals and first-time homebuyers. So, are we ready developers to fulfill the rising demand of ready-to-move-in apartments.