A report by Mumbai-based real estate rating and research firm LiasesForas says that at the end of first quarter of financial year 2018-19, there were 945,964 unsold units in eight tier-I cities including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan region (MMR), National Capital region (NCR) and Pune.
Moreover, considering the sales volume during the quarter, it will take 41 months to clear these inventories, it said in its report.
This is an opportunity for buyers who will also have bargaining leverage as the builders have to clear up their balance sheets quickly.
For home buyers there is a fairly large ready-to-move-in property. In the light of RERA, the buyer can make a safe bet that his investment will not get compromised.
The advantage of buying a ready-to-move-in house is that you can totally eliminate the biggest risk of project delay. You are not required to wait for the completion of the apartment and other project amenities.
This is advantageous to the builder who will realise that many builders have listed projects with a deadline of 5-6 years from now compared to the earlier three years.
Anshul Jain, country head and Managing Director, Cushman & Wakefield India, affirms that a ready-to-move in project allows one to closely inspect the structure and quality of finish.
Ramesh Nair, CEO and country head, JLL India, said the major benefit of buying a completed apartment is that buyers are completely aware and know exactly what they are buying while inspecting the apartment.
Besides, the buyer can get to know the neighbourhood where he is going to invest. If the buyer is planning to use it for investment purposes, he can start earning rentals which can help him with some part of the EMI.