The price gap between ready-to-move-in and off plan or under-construction housing has been narrowing year-on-year (y-o-y) since 2017 across the top seven cities.
A recent Anarock research reveals that the price gap between ready-to-move-in (RTM) and under-construction (UC) homes reduced to a mere 3-5% by Q1 2021. In 2017, the difference between the two categories was anywhere between 9% and 12% across cities, while in 2018 it was 5-8%.
Cities with lowest and highest price difference in Q1 2021:
National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) recorded the least price difference between RTM and UC homes at 3%. The average prices of RTM homes in
NCR were Rs 4,650 per sq ft while for UC homes it was Rs 4,500 per sq ft; in MMR it stood at Rs 10,700 per sq ft and Rs 10,350 per sq ft respectively.
Pune, Hyderabad and Chennai have the highest RTM/UC price difference at approx 5%.
In Bengaluru and Kolkata, the difference is just 4%.
The shrunk price gap works well for end-users as well as investors. End-users can see what they buy and save rent by moving in immediately, while investors focused on steady rentals can start earning right away.In the past four years, developers have been reluctant to increase the prices of ready homes as they need to clear their inventory.