Of the total 6.73 lakh units of unsold housing inventory, nearly 85,000 units are currently ready-to-move-in across the top seven cities.
What’s interesting is that out of these total unsold ready-to-move options, nearly 60% of the units are in the affordable and mid segments priced below Rs 80 lakh, showed data from Anarock Property Consultants.
Homebuyers are also showing more preference towards picking up such properties as completed properties that have received completion certificate get exemption from 12% Goods & Services Tax (GST).Currently, the bulk of end-user as well as investor demand are skewed heavily towards affordable and midsegment properties in this price bracket.
Anarock’s consumer sentiment survey for the second half of 2018 also revealed that nearly 67% of the aspiring homebuyers preferred to buy properties within this budget range.
“This isn’t surprising, as most of these properties indeed offer a good value proposition with the least amount of risk. However, the caveat is that a ready-to-move-in property must have a completion certificate to get benefit of the 12% GST exemption,” said Anuj Puri, chairman, Anarock.
The previously significant price difference between ready-to-move-in and under-construction properties is narrowing down because of massive unsold stock in most cities. However, additional GST charge on under-construction options is impossible to ignore.
A massive supply of ready to move in options in the market makes most buyers’ preference an obvious response.
“Real estate sector being a vo latile sector, buyers now prefer assuming lesser risk and are more confident of buying a ready-to-move-in apartment. We are witnessing good traction in our various projects in Panvel, Dombivli and Mulund,” said Mayur Shah, managing director, Marathon Group.