The real estate market is improving and potential home buyers have regained confidence. But if you think that all you need to do to own a home is just whisk a signed cheque and walk in to your brand new flat, you are quite mistaken. If Mumbai real estate experts and a recent survey by Makaan.com are to be believed there are not enough ready-for-possession flats to cater to the slowly improving demand this festive seasons.
An interesting finding in The Real Picture, a recent survey conducted by Makaan.com, shows that though there is a strong movement in the real estate market, home seekers are going to get to step in their new homes only after two three years time. Why? Because most new developments are sold out and buyers have only one option for investment – buying in under construction projects.
This survey was conducted by Makaan.com in leading national metros and tier II cities on their portal from August 11 to August 20 and saw participation from over 3200 brokers / realtors.
It is true that there are hardly any ready for possession flats in the market. Out of 100 flats, you will probably get one flat available for moving in. But this is so because there is a cost to acquiring customers and developers don’t want to lose out on the market share. So they prefer to get their flats booked as early as possible. If they don’t have a product available, the buyer will go to someone else who has it.
Buying under construction also has its advantages: cost benefits or buyers and inventory clearance for sellers. Every buyer today knows that the closer the project is to the ground level, the cheaper it is. And so buyers in Mumbai lap up the opportunity to invest in under construction projects. Seventy five percent of the sales happen even before the foundation of the building is laid. In a Thane project, the builder (company) managed to sell out 200 flats just by word of the mouth.
So, if you are hunting for a ready for possession home, you will either have to pay through your nose or approach a broker to find a resale flat. A home seeker, who’s on the house hunt for the last three months, points out he has been looking for a flat in the Andheri to Borivali stretch, but the waiting period is around one and half to two years. When it comes to buying resale property, the loan component is also at risk and the whole deal becomes unaffordable.
Hopefully developers will want to cash in on the festive period by offering irresistible offers and better pricing. So if you have been deciding to make a home purchase this Dussehra be prepared to be patient for a couple of years. After all, patience has its own reward.
Buying under construction:
1) Research the builders’ reputation without fail
2) Visit few of their completed projects to get a fair idea on whether they fulfill their promises or not
3) Ask the developer to show you all the mandatory documents
4) Clear doubts about what is complimentary and what you’ll be paying for
5) Ask without fail the structure of payment
6) Check with the neighboring buildings about basic infrastructure like water, electricity etc
7) Do a check on the flood situation
8) Take a round and find out if there are facilities like schools, hospitals nearby.