Price Difference Between Ready To Move And Under Construction Homes Shrinking
New Delhi: The difference in prices of ready to move (RTM) and under construction (UC) homes is reducing every year with the difference now just 3-7 percent among the top seven cities in the country while it was 8-12 percent in 2017, according to ANAROCK property consultants.
“Previously, the ultimate selling proposition of under-construction homes was significantly lower prices over ready-to-move options. The RTM premium was primarily on the 'instant gratification' quotient, immediate freedom from rent and zero construction risk. In the last two years, the price gap between these two categories has eroded year-on-year. In 2017, the price gap in the top 7 cities was anywhere between 8-12 percent; this reduced to 5-9 percent in 2018 and sank further to 3-7 percent in 2019. Along with the other benefits that ready homes provide, they attract no GST. This reducing price gap is highly favourable for end-users as well as investors,” says Anuj Puri, Chairman - ANAROCK Property Consultants.
Delhi NCR has the lowest price difference between UC and RTM houses at just three percent in 2019. The average price of RTM properties was Rs 4,530 per sq ft while for UC properties it was Rs 4,410 per sq ft.
Bangalore had a difference of about five percent in 2019. The average price of UC properties was Rs 4,820 per sq ft and that of RTM properties was Rs 5,050 per sq ft.
Pune has the biggest difference between RTM and UC properties at seven percent in 2019. The average price of RTM houses is Rs 5,600 per sq ft. and that of UC houses is Rs 5,200 per sq ft.
Hyderabad had a difference of six percent in 2019. The average price of UC houses in 2019 was Rs 4,015 per sq ft. while that of RTM homes was Rs 4,250 per sq ft.
Chennai had a difference of four percent in 2019. The average price of UC properties is Rs 4,700 per sq ft. and Rs 4,880 per sq ft. for RTM properties.
Mumbai had a price difference of four percent in 2019. The average price of UC properties is Rs 10,075 per sq ft. while RTM houses are priced at Rs 10,460 per sq ft.
Kolkata had a difference of 4 percent in 2019. The average price of UC properties is Rs 4,265 per sq ft. and Rs 4,420 per sq ft. for RTM properties.