Those looking for good buys in the NCR can check out unsold stock in projects that are complete or nearing completion
The summers are here and the search for homes has become doubly difficult as one has to not only face the scorching sun, but also take the heat of rising real estate prices. But wait, that’s not all. If you are on the lookout for a new apartment that’s ready for possession, then get ready with a bigger stash of cash, for that’s certainly not going to be cheap.
Area in focus This week we look at Ghaziabad, one of Delhi NCR’s hot draws, offering affordable apartments to the middle-class buyer who also doesn’t find the commute to the city centre that tough to handle. Now the question is, where should one look (for a home) in Ghaziabad?
You are here Kaushambi, Vasundhra, Raj Nagar Extension, Vaishali, Crossings Republik have projects which have been launched and sold some years back and are almost ready for possession. A number of buyers today are interested in the flats that have not been sold in these projects. “We have completed first phase of River Heights in Raj Nagar Extension and possession has started. The prices at Raj Nagar are still low unlike other places. For people, who think their pocket permits, should look for homes in ready-to-move-in projects, as they will not have to wait long for delivery and will also avoid paying rent and home loan EMI simultane- ously,“ says Manu Garg, MD, Landcraft developers. (See box for list of projects) The cost?
“It’s obvious the costs (since project launch) of these flats have gone up by 40-50 per cent. Some flats in our project Gulmohar Greens, Mohan Nagar, are empty but the prices now are around Rs 2,720 per sq ft as against the launch price of Rs 1,900 per sq ft two-three years ago,“ says Sunil Jindal, CEO, SVP Group.
A lot of people want affordability to be factored in when it comes to ready proj- ects, but that, say builders, could be asking for too much. “It is not possible for people looking for houses in these projects to get low- price deals.
“When a project gets com- pleted it comes up with appreciated price and this appreciation depends on many factors apart from just location,“ says Dujendar Bhardwaj, JMD Group and company, realty agents.
As most of these homes are in completed projects, these are in areas where infrastructure, etc, has come up. “Location is the most important factor in the real estate scenario and prices are directly proportional to it. If you have decided to invest in such a project, then scout around for a good loca- tion where other facilities are also functional. If a per- son is buying a ready home from a developer directly, then the prices might be a little higher than the market rates. This is more so because in such cases the payment to the developer will have to be done in white,“ says Pradeep Mishra, real estate analyst. Why do flats remain unsold?
Experts say that many real estate developers hold back their inventory and sell it later at a higher price. When they breakeven after the launch of a project and think they can complete the proj- ect with the money collected, they hold back the inventory.
So 60-70 per cent of the proj- ect is sold off and the rest held back. Of course cases vary from developer to developer. “In our case, at SG Impressions in Vasundhara, we did not get the permissions for a duplex apartment at the time of launch. So we could not sell it at that time. Hence, these apartments remained empty.“Not getting the requi- site permission also means the stock remains unsold.
Apartments getting clear- ance much after the launch of a project are often put up on sale, much later after pos- session of other flats have been handed over. This might happen due to various reasons such as increase/ purchase of floor area ratio (FAR),“ says Gaurav Gupta, director, SG Estates.
Is it a good buy?
“Yes, it’s a good buy for peo- ple who want ready facilities like shopping complexes, other facilities such as hospi- tals and schools nearby, good infrastructure and good accessibility. It is good for people who want to move in immediately. However, peo- ple who buy for investment won’t get good returns. Such buys won’t also suit people for whom budget is of utmost priority,“ adds Mishra.