The residential segment in the Indian realty market is always profoundly affected by the ongoing social and economic situation. The pandemic of COVID-19 has not only altered the social dynamic but transformed it completely by limiting the movement of inmates within the four walls of homes.
The urge to seek change and revitalize the space for betterment is higher. Brands and businesses have accepted this lifestyle as the new normal, and are repurposing their products based on that. The scenario is similar in the real estate sector. Developers with a consolidated share in the market who have ready to move in projects in their kitty, that provide all the new normal necessities, one of them being increased green cover have higher chances of becoming the first choice for fence-sitters looking for better spaces.
Two trends observed in the residential segment were the increase in demand of Ready To Move Homes or RTMI homes and Integrated townships focussing on healthy & wholesome living. A recent report jointly released by Housing.com and National Real Estate Development Council (NAREDCO), says that a majority of respondents surveyed (73%) comprise 'first-time homebuyers', who are looking to buy a 'ready-to-move-in-house' for end-use and are from the age group of 25-45 years. While 60% of respondents opined that for the next six months, they would prefer a ready-to-move-in property, 21% said they were okay with a property with a delivery timeline of maximum of one year.
There is a total unsold stock of over 6.44 lakh units in the top seven cities (as on March 2020 end) and out of which nearly 12 per cent of homes are ready to move in. Some states are even contemplating the introduction of e-registration of property documents, thereby completing the entire value chain to accelerate the property purchase process.
Projects located in peripheries of metros like Noida and Greater Noida, with necessities stores in the premises have also become a really popular choice for new-age homeowners. This is primarily due to Work from Home being the new norm. Noida & Greater Noida regions have a huge influx of IT/ITes, manufacturing, and several other industries that provide mass employment. The professionals, working with them tend to look for homes located in the vicinity of their workplace. Now that these professionals are going to be spending most of their time at homes, they need a space that is flexible and convenient in terms of daily necessities and connectivity. Apart from this, immunity and wellness have become very much an integral part of our lifestyle. So, buyers who have disposable incomes in these times, and are willing to spend more for RTMI homes will only prefer projects that are designed to address the concerns of new normal.
Also, RTMI homes come with the benefit of no GST that helps the first time buyer save an additional 5% tax which they would have otherwise paid for under-construction property. Additionally, RTMI homes let buyers get the immediate tax benefits over home loan premiums (both principal and interest). All these benefits ensure that the payback on an RTMI home is higher making it a benefitting deal.
RTMI homes by several developers, fortunately, were designed based on these requisites, even before the advent of Corona in our lives. Projects with an increased green cover, open floor plans, dedicated office space, spaces with natural light, yoga and meditation rooms, stern cleanliness & maintenance guidelines with upgraded monitoring and security systems. All of this combined has made them the most preferred choice for buyers now. This category of buyers not only wishes to upscale their lifestyle but also seeks a sense of safety, security, comfort, and convenience.
RTMI homes are a popular choice for NRI investors also because they can envision that their demand is growing in the market. People who cannot afford to buy property would at least look for better rental accommodation such as these. Also, these newly designed spaces won't just be having housing units but so much more like commercial complexes, foreign investors can interest themselves with the purchase of entire commercial arcade located within the premises, and earn via rental yields from shop owners. So, investors have two options to look forward to and put their funds into. Thus, making RTMI homes the preferred choice for end-users as well as investors.