Are you Ready-To-Move or Ready-To-Wait?

Homebuying process in Indian household is a decision of a lifetime. The entire process includes efforts in terms of market and product analysis, numerous visitations, planning finances, and a thoughtful decision making. The process is both emotionally and physically demanding for the buyers. However, real estate asset class in India is one of the safest investment options. Owning a house, in India, is a matter of status and safe parking of finances. This resolves 2 purposes – an abode for living and a lucrative return on investment.

~ Delivery is the key.

Any housing project is largely influenced by their builder’s credentials. The design, quality, amenities, finish, and delivery timelines are all planned and delivered by the builder. The past of the real estate sector is tarnished with recurring issues of delayed delivery, poor quality, and in some cases, absolute shut down of the projects. Adding the element of “under-construction” adds to the uncertainty of all the above-mentioned issues. As a part of the investment planning, it is key to decide whether you are ready to harbor the uncertainty or invest in properties tangible to you. The question is whether you’re ready to wait or ready to move?

This decision is integral to the party investing since the entire planning for the next 5 years is impacted by this step. Opting for the right type of flat is of utmost importance as it is predominantly a key decider for financial planning, and lifestyle needs. Significant factors in this decision-making process are – budget, personal timeline, and the extent of customization preferred.

• Ready-to-move-in flats are for immediate delivery and occupancy that allows the buyer to move past the uncertainty and waiting stage. This basically removes the ambiguity of delivery and the fear of any digressing of timeline adherence.
• Under-construction flats are work in progress and are being built with scheduled completion at a future date. This helps in better finance planning and a substantial cost savings in the long run.

~ Two Benchmark Phases of Indian Real Estate Market.

I. Establishment of RERA

Another line of assurance was the establishment of Real Estate Regulatory Authority (RERA) in the year 2017 that changed the face of real estate in India. The industry that was largely infamous for being unorganized and scattered is now a streamlined sector with protocols and strict adherence in place. RERA brought in the discipline that the industry was longing for. All the stakeholders of the sector – Supplier, i.e. developers and builders, Consumers, i.e. buyers and investors, and Intermediaries, i.e. channel partners are designated to certain protocols and an ecosystem beneficial for all the participants.

• Impact on Developers – Enhanced Credibility | Financial Discipline | Transparency Requirements
• Impact on Buyers – Access to reliable information | Grievance Redressal | Better Security | Empowers & Informed Decision Making

II. Indian market post covid: 2023 to 2025

After the episodic pandemic, Indian Real Estate market got divided into two phases: pre-covid (2022 and before) and post-covid(2023 and anfter. There has been a significant shift in both quantitative figures and market sentiment in the demand-supply scenarios. The covid years of 2020 to 2022 was a stagnated phase for all business sectors, howeverm real estate sector was one of the first to bounce back in action. 
The COVID-19 pandemic totally restructured the dynamics of the Indian real estate, spurring the change in buyer behavior, preferences of the properties, and investment tactics. The real estate sector is indicating signals of its recovery from the deep-impacting scenario of the post-COVID era; however, the market has been evolving with the new priorities, new technologies, and the changing concept of work and lifestyle. Below is a deep dive of the most significant trends moving the real estate industry in a post-COVID world:

1. Remote/Hybrid working models

2. Increasing demand in tier 1 cities from tier 2/3.

3. Co-living models

4. Affordable housing

5. Demand Shift out to the Suburban and Tier 2/3 Cities

These factors highly trigger the decision-making process of choosing between ready to move or under construction projects.

Post covid, there is a significant change is market sentiment towards under construction projects. The % share of units sold from the new launches in Q1 of 2025 is18.9% of total units sold. Last year, the % share was 22.90 for the whole year.  

• The under-construction projects have seen a progressive growth in last 3 years. On an average, 88% of total units sold in last 3 years are under construction. 
• This growth has been substantially stable with % contribution of 85% and 88% in 2023 and 2024 respectively.
• Q1 2025 is equally promising. 91% of units sold in three months, i.e. January to April 2025, are under-construction.
• Total of 59400 units sold out of the 65000 total units sold are under-construction.

~What do these figures signify?

These changing trends boasts of changing positive sentiments of the market on developers and their promises. Erstwhile, this was a rare scenario. With projects being stalled midway, abandoned, and left incomplete for decades stirred any confidence buyers would have had on the developer. However, with changing phases – country being hit by a massive pandemic and the establishment of RERA, the change of sentiment is visible. Buyers are gaining confidence on the delivery timelines, quality, and product assurances of the developers.

1. Buyers’ Point of View:

• With a regulatory grievance body in place, verified digitized record of projects and builder credentials, and a forum for information, buyers have become more informed and knowledgeable about their purchases
• The buyers find confidence in projects those are under construction – this eases out their financial planning and fragment their costs over years
• The price advantage the buyers get in under-construction properties for sale is enormous. An average under-construction 3BHK in Mumbai Suburbs is priced at INR 2 crores while a ready-to-move is INR 2.75 crores which is close to 30% difference – a huge financial benefit for buyers.
• The digitization of processes in real estate has erased the major problem of intangibility of under-construction projects. 3D model, project walkthroughs, samples etc. help buyers imagine the tangibility of their purchase.
• The time span between buying and possession can be well utilized to plan the finances, opt for payment plans, and fragment their spending accordingly.

2. Sellers’ Point of View:

• Sellers can optimize scalability by producing mass products for buyers
• The major advantage is the flexibility provided for delivery of the project. The adherence is mandatory, but the developers can consume the set time to produce quality products
• The product palette widens for developers to tap on multiple variety of products for offering.
• The current market scenario is under-construction friendly – for all the stakeholders of the process. The major issue of uncertainty in delivery and intangibility is well tackled by the improved planning. The market is moving towards under construction projects, Are You?

*Data, figures, & excerpts taken from REIS, JLL Research.