Consumers are preferring to purchase ready-to-move-in homes, which command a price premium of up to 21 percent, than properties under-construction because of huge delays in completion of projects, according to a report.
New Delhi: Consumers are preferring to purchase ready-to-move-in homes, which command a price premium of up to 21 percent, than properties under-construction because of huge delays in completion of projects, according to a report.
According to a report by realty portal Magicbricks.Com, ready-to-move-in properties command an average 5 percent premium over under construction properties.
Ready-to-move-in properties in Greater Noida recorded a maximum 21 percent price premium during October-December quarter of last year.
The report covers the quarterly price movement in the secondary/resale real estate market of the 14 major cities in the country.
"One of the biggest challenges in the current real estate market is lack of consumer confidence in developers to deliver the projects on time. This is reflected in the price differential between under construction and ready-to-move-in properties in the secondary/resale real estate market," the report said.
It said consumers are hesitant to buy properties under construction because of project delays which lead to consumers having to bear additional financial burden of paying rent over and above the home loan instalment.
"In the current market scenario, consumers are opting for ready-to-move-in properties and are willing to pay a premium as the delivery risk is low when compared to under construction properties and buyers can start using the property in a minimum time-frame," the report said.
Magicbricks.Com is owned by Magicbricks Realty Services, which is a subsidiary of Times Internet Ltd.