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Ready-to-move properties most preferred in Bengaluru
The New Indian Express  |  November 8, 2018

Express News Service Bengaluru

The advent of the Real Estate Regulatory Authority (RERA) in the state signalled a change in the way real estate developers dealt with potential clients. However, with under 2,000 projects out of the thousands of properties being developed across the state choosing to register with the authority, home buyers are being forced to continue choosing projects carefully. In such a market, the sale of ready-to-move-in housing or almost-completed projects has progressed by leaps and bounds, while those willing to invest in newly-launched (under construction) properties are a wary and tiny lot, a new survey has shown.

 

Conducted by real estate advisory firm ANAROCK, the study shows that in Bengaluru, 40 per cent of the respondents in the survey chose to buy properties that allowed them to move in immediately. A further 48 per cent said that they would consider buying properties that will be completed in under six months.

 

The study was conducted across major cities of the country, as well as on respondents from the  non-resident Indians (NRI) category.

 

"Property seekers now prefer to buy ready properties in order to avoid risks such as project delays and unethical builder practices in general. Ready-to-move-in properties thus offer a good value proposition for cautious homebuyers, and are doubtlessly the least risky at the current time.

 

Not only do they offer instant gratification and a WYSIWYG (what you see is what you get) assurance, they also do not attract GST. However, under-construction properties do fall under the purview of GST, which is levied at a massive 12 per cent of the base cost of a property," said Anuj Puri, Chairman of ANAROCK, commenting on the survey.

 

Those willing to opt for properties that will be ready within six months, also believe that the shorter timeframe of completion signifies lesser risks as builders more likely to adhere to the deadlines. In comparision, only seven per cent of prospective buyers surveyed said that they were willing to wait up to a year for the property to be handed over to them. Newly launched projects, which would take more than one year for completion, attracted the attention of only five per cent of respondents in the city.