JLL: What Drives The Demand For Ready-Possession Homes?

Posted by: at 8/08/2016 11:21:00 pm
India 09 August 2016:  

Ashwinder Raj Singh, CEO – Residential Services, JLL India

It is no secret that ready-possession projects or projects nearing completion are costlier than under-construction projects. Nevertheless, many buyers are eager to acquire property on an immediate basis rather than waiting. There are sound reasons behind such a decision:

JLL: What Drives The Demand For Ready-Possession Homes?JLL India,Real estate,Property,Housing,
·         Cost Differences:

The real estate sector has gone through a serious down phase over the past couple of years, resulting in lower new launches, price reductions and higher unsold inventories. This has encouraged developers to offer attractive deals, discounts and various freebies to attract buyers of ready-to-move properties. Therefore, it makes sense for buyers to invest in a ready-possession project rather than wait for a new project to come up over a period of time. Also, prices are beginning to rise again, and the market is looking up steadily - this is the best time to invest in property, and a property that’s ready to be moved in obviously has great appeal.

·         Cost of Rentals:

Most people buy their homes with bank loans, and it becomes costly for them to keep paying EMIs as well as the rentals till the builders complete their project and hand over the house keys. Paying a little bit extra to acquire a house right away is cheaper than paying rentals over a period of time, which is an additional cost for the buyer.

·         Rental Income Potential:

A lot of investors buy houses with the objective of earning rental income or re-selling them to earn profits. Purchasing a property in a completed project helps them to start earning immediately out of it through rentals rather than waiting a few years and locking their money away in a non-income generating project.

·         Security:

The real estate sector is still fragmented, and there are a lot of fly-by-night operators who dupe unwary buyers and investors by collecting the initial sums and then vanishing. In these uncertain times, people want security and assured returns, and finished projects offer them this stability and guaranteed safety of a project.

·         Uncertain Delivery Timelines:

Unfortunately, the cases of delayed delivery of projects have been on a consistent rise owing to various factors plaguing the real estate sector. This directly impacts the financial burden on a buyer, for whom the uncertainty costs a lot of money. Also, the extended periods of EMIs and other expenses take a toll. Therefore, it makes more sense for buyers to invest in a completed projects rather than ones that is mid-way or about to begin.

·         Uncertain Support Infrastructure:

A lot of new projects are coming up in the vicinity of major cities where the supporting infrastructure like roads, electricity, water connections etc. are not developed. These are promised only when the projects are completed, but under-construction projects have to wait for long periods of time. This puts off the buyers who want to move in their new homes and also derive the benefit of ready infrastructure instead of waiting for basic amenities to be provided to them.

These are valid concerns for buyers; and the demand for ready-to-move-in homes works equally well for developers, who can offload their unsold inventory and get much-required liquidity.

Mumbai Residential Projects Status


Developer 
Project
Location
Status




Omkar
Omkar Alta Monte
Malad East
Ready Possession
Indiabulls
Indiabulls SKY
Elphistone
Ready Possession
Kalpataru
Kalpataru Sparkle
BKC
Ready Possession
Kalpataru
Kalpataru Horizon
Worli
Ready Possession
Ahuja
Ahuja Towers
Prabhadevi
Ready Possession
Shivalik Developers
Vision Crest
Dadar
Ready Possession
Sheth
Beaumonte
Prabhadevi
Ready Possession
Raheja
Raheja Vivarea (Tower A, B, C)
Mahalaxmi
Ready Possession
Ashford Constructions
Ashford Palazzo
Breach Candy
Ready Possession
Soham Group
Soham
Napensea Road
Ready Possession




Vijay Group
Vijay Residency
Thane
Possession within 6 months
Lodha Group
Lodha Grande
Thane
Possession within 6 months
JVM
Platinum Heritage
Thane
Possession within 6 months
Acme Group
Acme Ozone
Thane
Possession within 6 months
Larkins
Pride Palms
Thane
Possession within 6 months
Paradise Group
Sai Mannat
Kharghar
Possession within 6 months
Marathon
Marathon Nexzone
Panvel
Possession within 6 months
Goodwill
Goodwill Pride
Panvel
Possession within 6 months
Runwal
Runwal Greens
Mulund
Possession within 6 months
Romell
Romell Grandeur
Goregaon East 
Possession within 6 months
Raheja
Raheja Ridgewood
Goregaon East 
Possession within 6 months
Lodha Group
Lodha Fiorenza
Goregaon East 
Possession within 6 months
Runwal
Runwal Reserve
Worli
Possession within 6 months
Lodha Group
Lodha World Crest
Lower Parel
Possession within 6 months
One Avighna Group
One Avighna Park
Lower Parel
Possession within 6 months
Ekta
Ekta Invictus
Dadar
Possession within 6 months
Benchmark
Solus
Bandra
Possession within 6 months




Lodha Group
Lodha Luxuria
Thane
Ready Possession/ Possession within 6 months
Radius
Radius Imperial Heights
Oshiwara
Ready Possession/ Possession within 6 months
Sheth
Sheth Vasant Oasis
Andheri East
Ready Possession/ Possession within 6 months
Lodha Group
Lodha Eternis
Andheri East
Ready Possession/ Possession within 6 months

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