Is it good time to buy ready-to-move home?

With Union Budget 2018-19 just around the corner, the Indian real estate market waits with bated breath to see how it can potentially benefit from the annual affair

Due to the structural changes and policy reforms such as demonetisation, RERA and GST, the new launches slowed in 2017. Image source: Reuters

Owning a house is the culmination of almost every Indian’s lifetime efforts and aspirations. It has never been a better time for aspiring homebuyers, as there are many ready-to-move housing options available across most Indian cities.

The sense of security, achievement and social stature linked to home ownership is what has for long been driving the demand and supply of residential developments across India. All major roads, railway stations and airports are flanked by hoarding advertising real estate projects.

With Union Budget 2018-19 just around the corner, the Indian real estate market waits with bated breath to see how it can potentially benefit from the annual affair.

With a massive urbanisation rate of more than 30% (estimated to reach 40% by 2030), the demand for home in India will continue, said Anuj Puri, chairman, ANAROCK Property Consultants.

However, due to wavering economic growth, an uncertain job market and rising property prices, residential real estate demand has remained largely subdued over the last few years.

Paradoxically, developers continued with their protracted project launches, leading to a huge unsold inventory pile-up.

Due to the structural changes and policy reforms such as demonetisation, RERA and GST, the new launches slowed in 2017. Nevertheless, December 2017 saw more than 7 lakh units remaining unsold across top 7 cities of India, Puri said.

Under RERA regime, stringent guidelines and financial discipline have now been force-fed into the systems and processes governing the real estate business in India. Not surprisingly, developers are now focusing on completing existing projects to avoid being entrapped in compliance hassles, Puri added.

The shift of realtors' focus from selling incomplete inventory to project completion is a blessing for homebuyers. The mammoth unsold inventory has already turned the Indian real estate market into a strongly buyer-favouring market.

Now in the beginning of 2018, there is a huge opportunity to cherry-pick ready-to-move-in house as around 1.7 lakh unsold units are likely to be completed this year.

"With the right kind of boosts to the Indian consumption story, we see massive return of buyers who are hoping to snap up ready-to-move homes but need that last decisive ‘last-mile’ incentive push."