News: Homebuyers prefer ready projects; southern cities lead completions-08-10-2020

https://realty.economictimes.indiatimes.com/news/industry/homebuyers-prefer-ready-projects-southern-cities-lead-completions/78546723

The Southern markets including Bengaluru and Hyderabad have seen the completed projects sell faster as mere 5% and 6% of completed projects in these cities, respectively are yet to be sold.

MUMBAI | BENGALURU: The rising preference for ready and completed projects in the backdrop of concern over deliveries is getting underscored further during the current Covid19 induced uncertainty. Completed projects are emerging as the other segment apart from affordable and mid-segment projects that is clicking with homebuyers.

The low proportion of completed projects in total unsold inventory is indicating this preference. Out of total 792,490 completed projects that were launched between 2013 and the recently concluded September quarter across India, around 90% have already been sold, showed data from ANAROCK Property Consultants.

The Southern markets including Bengaluru and Hyderabad have seen the completed projects sell faster as mere 5% and 6% of completed projects in these cities, respectively are yet to be sold. Chennai also has sold over 90% of completed projects during this period.

In Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) too, nearly 90% of the completed projects during this period have already been sold.

“Predominantly driven by end-users from the IT/ITeS sector, the conservative housing markets of the Southern cities also benefit from the proactive project completion focus of developers active there,” Anuj Puri, Chairman, ANAROCK Property Consultants.

Altogether more than 23 lakh units were launched between 2013 and third quarter of 2020 across the top 7 cities, of which 34% are completed. Another 19% is scheduled to complete within the next 12 months, and another 19% between one to two years.

The ongoing pandemic has pushed the already growing preference for ready projects further and this will continue even after the current health crisis gets over.

“The Covid19 pandemic has added to the importance of ready possession homes, but the reasons are different. From savings in form of GST to the advantage of being able to move in once payment and formalities were completed, the biggest plus point is that COVID-19 has brought in the factor of urgency in being able to move in the new home,” said Niranjan Hiranandani is President (National) NAREDCO and Assocham.

According to him, either the previous home was rented; or smaller in size – families need ready to move in homes which can also offer ‘work from home’ as also ‘study from home’ – and, both at the same time. The safety and ‘secure from the pandemic’ aspect is what drives most home seekers in the post-COVID-19 world to opt for ready possession homes.

Out of all the projects launched and completed between 2013-till date, the average time to complete projects in Chennai, Bengaluru and Hyderabad was between 4.1 and 4.3 years for smaller projects with 100-500 units each and between 5.5 - 5.9 years for large projects with over 500 units each. This is significantly less than the average completion time in NCR, where it is 6 years and 7.2 years, respectively.

In MMR, new launches were nearly 6.26 lakh units during the period and of this, 28% have already been completed. Average completion time for projects in the country’s financial capital stood at 5.4 years for small projects and 6.5 years for large ones.