Infra Talk: What drives demand for ready-possession homes?

It makes sense for buyers to invest in a ready-possession project rather than wait for a new project to come up over a period of time. Also, prices are beginning to rise again, and the market is looking up steadily - this is the best time to invest in property, and a property that’s ready to be moved in obviously has great appeal.

Most people buy their homes with bank loans, and it becomes costly for them to keep paying EMIs as well as the rentals till the builders complete their project and hand over the house keys.

A lot of investors buy houses with the objective of earning rental income or re-selling them to earn profits. Purchasing a property in a completed project helps  them to start earning immediately out of it through rentals. 

The real estate sector is still fragmented, and there are a lot of fly-bynight operators who dupe unwary buyers and investors by collecting the initial sums and then vanishing. In these uncertain times, people want security and assured returns, and finished projects offer them this stability and guaranteed safety of a project. 

Unfortunately, the cases of delayed delivery of projects have been on a consistent rise owing to various factors plaguing the real estate sector. This directly impacts the financial burden on a buyer, for whom the uncertainty costs a lot of money.  

A lot of new projects are coming up in the vicinity of major cities where the supporting infrastructure like roads, electricity, water connections etc., are not developed. These are promised only when the projects are completed, but under-construction projects have to wait for long periods of time.