There have been significant changes in India’s residential market. One of the most prominent is the demand for ready-to-move-in houses. And it is not just a phase, but rather a big shift in how consumers are looking at residential development.

In the past, under construction development dominated residential markets because they allowed more flexible payment schemes and offered cheaper prices. This also meant consumers would tolerate delays of up to several years before taking possession of their purchases. The current scenario is quite different.

Certainty and financial benefits

One of the benefits of ‘ready homes’ is the high degree of certainty in them. The customer can examine the building from inside, see how well the work has been done, learn about its structure and get familiar with its surroundings without spending any money on it.

The factor of trust is another aspect that cannot be overlooked. Construction delays in the last 10 years have had a great impact on consumer behaviour. As a result, people today prefer to buy homes where work has already started or finished. It helps differentiate projects in a competitive city market. It also becomes particularly important for people who might be shifting houses because of their careers and who wouldn’t want to wait for years to get a possession certificate.

Another practical aspect is the financial one. Those opting for ready-to-move-in houses save themselves the burden of paying rent and mortgage on under construction homes.

The current generation of buyers is also choosy when it comes to the overall living experience. Expectations have been raised not only about timelines for possession, but also for issues such as privacy, proper planning, lower density, greenery and availability of facilities. People are not just looking to acquire house, they want a residential ecosystem that will help them achieve long-term goals.

Developers are now reworking their strategy to keep up with the trend. No doubt, regulatory changes and robust systems of compliance that have increased transparency in the sector are also helping this momentum. In the coming years, the demand is set to become even more pronounced.

The writer is CBO and Director of TARC Limited.