Price difference between completed, under construction flats narrows to 3-5 pc: Report
Business Bureau :
THE price difference between completed apartments and under-construction flats has narrowed down to 3-5 per cent as against 9-12 per cent in the calendar year 2017, as prospective homebuyers' preference is shifting towards ready-to-move-in units due to risk factor, according to Anarock. According to a report by Anarock, one of the leading property consultant in India, the average price of ready-to-move-in units is higher by 3-5 per cent across seven major cities in comparison with the under-construction residential properties. In the national capital region (NCR), the average price of completed units is Rs 4,650 per sq ft, while under-construction flats cost Rs 4,500 per sq ft.
The average price of ready flats in Kolkata is Rs 4,465 per sq ft, up 4 per cent from Rs 4,300 per sq ft for under-construction units. In the Mumbai Metropolitan Region (MMR), the average prices of completed and under-construction flats are Rs 10,700 and Rs 10,350 per sq ft, respectively. The average rate of ready apartments in Pune is Rs 5,650 per sq ft, up 5 per cent from Rs 5,360 per sq ft for units under construction. In Hyderabad also, the price difference is 5 per cent. The average rates of completed and under-construction apartments are Rs 4,290 and Rs 4,075 per sq ft, respectively.
The average rate of ready-to-move-in flats in Chennai is Rs 5,000, while under-construction units cost Rs 4,775 per sq ft. In Bengaluru, the average prices of finished and under-construction inventories are Rs 5,130 and Rs 4,910 per sq ft. Anarock Chairman Anuj Puri said, “Previously, buyers of under-construction homes had one major advantage. Their patience and willingness to court construction risk were rewarded by notably lower prices.” However, he pointed out that prospective homebuyers have become risk averse due to construction delays and stalled projects and now, demand has tilted heavily towards ready properties. Moreover, Puri said completed homes do not attract GST has been an added attraction. “Even the price gap between ready-to-move and under-construction homes has eroded substantially, from 9-12 per cent in 2017 to just 3-5 per cent by January-March quarter 2021,” he further said.