Under construction vs ready to move in flats in Kolkata
By Pratik Balasaria

Buying a home in itself is not a big life-changing decision, and we might as well add it is not an easy decision to make, especially with the variety of housing options available today in Tier 1 cities like Kolkata. There is a long list of factors to consider— the cost, capital returns, quality of construction, location, amenities, size, among others. 

The prices of ready to move in flats in Kolkata have become marginally cheaper and the highest traction is observed in the mid-segment configurations (2 and 3 BHKs). Among the most coveted localities in Kolkata, the demand for ready to move in flats in the following areas of the city is the highest— flats at Kolkata Rajarhat, flat at Kolkata new town, flats in North Kolkata, Central Kolkata, South-West Kolkata, South East Kolkata, South Extension, and Howrah.  

In the July-September quarter, home sales in India saw a sharp recovery in all top cities compared to the preceding quarter. Cities of Kolkata and Ahmedabad witnessed the maximum rise in sales, followed closely by Mumbai Metropolitan Region (MMR) and Bengaluru. The demand for ready to move in houses has seen an upward surge mainly owing to the delays in the under-construction housing projects shaking the buyer’s confidence. Furthermore, with the uncertainty of things in the Post-COVID period, homebuyers have become more discerning about real estate developers they are buying from. 

Please add all the ready to move in flats offered by PS group in a listicle format here. Say here is a list of suggested ready to move in flats in Kolkata offered by PS group

Here is a list of suggested ready to move in flats in Kolkata offered by PS group:

  1. Navyom : Features 4BHK & 5BHK duplex ready to move in flats in Kolkata at New Alipore.
  2. Aurus : Features 3BHK, 4BHK & 5BHK ready to move in flats in Kolkata at EM Bypass.
  3. Vyom : Features 3BHK & 4BHK ready to move in flats in Kolkata at New Alipore.
  4. Panache : Features 3BHK ready to move in flats in Kolkata at Salt Lake City.

Under-construction flats vs. Ready to move in flats in Kolkata

ready to move in flats in Kolkata

The share of real estate inventory for under-construction housing units and ready to move in flats in Kolkata is large which further adds to the dilemma of the buyers when it comes to weighing between the several advantages and disadvantages of these inherently linked housing units.  Let’s discuss some of the pros and cons of under-construction vs. ready to move in flats in Kolkata:

Pros of under- construction flats

ready to move in flats in Kolkata: pros of under construction flats

The invariably low prices

One of the biggest advantages of under-construction property is its price. If you compare it with a ready to move in flat, the difference is at least 10-30 percent. Furthermore, if you can compare the difference of price range between an under-construction property and a ready to move in unit, the prior home will invariably be less in price even if the two flats are at the same location, area, property type, and builder. 

The high monetary returns

If you looking at property buying purely for investment purposes and resale, an under-construction property will fetch higher returns on your investment in comparison. The price of an under-construction project increases with the stages of completion. There are therefore fair chances that you will have to pay less at the time of booking, but the price of your investment will double at the time of possession. If you sell the property close to the possession time, there are higher chances to earn appreciation on the investment, as the highest quantum leap of cost is gained as soon as the flat is handed over to the buyer.  

Furthermore, due to the extended window period between the buying stage and delivery timeline; an under-construction unit yields high monetary returns if you buy it at the rudimentary stage and sell it before taking possession— a better-suited option especially for investors and not for end-users. 

The RERA advantage

In compliance with the Government of India and the Real Estate (Regulation & Development) Act from the year 2016, under-construction properties are obligated to register under RERA of the respective states. As a result, the under-construction projects are not subject to the high risks of the real estate sector as in the pre-RERA period. Before RERA, the time required to obtain an occupancy certificate from a local development authority for an under-construction unit was longer. The delivery risk has therefore mitigated to a great extent with the RERA Act. 

Furthermore, builders are obligated by the Act to complete stage-wise construction of the project, thus ensuring a handover to buyers within a fixed deadline. You can look up the RERA information of the property on their respective State’s RERA website

Cons of under-construction flats in Kolkata

under construction building: cons of under construction flats

Uncertain timeline of delivery 

One of the biggest disadvantages of under-construction projects is that there is no fixed time of delivery. You may also have to take into account the timeline of such projects gets mired in court cases over land, or projects get stalled over funding issues. Such hindrances may weigh heavily on your pocket, especially if you are paying EMIs and rent every month. 

Furthermore, with project delays, homebuyers who opt for home loans for under-construction properties risk losing out on the account of tax benefits. With the uncertainties of Indian real estate, a delay in the delivery of an under-construction project equals to loss on the tax benefits.

Subject to change at the time of delivery 

As a potential homebuyer of a flat at Kolkata, you should know that the under-construction housing unit may not match the amenities and features as mentioned on the sales brochure by the real estate developer. It is common knowledge that amenities like green spaces, lifts, swimming pools, parking space, or quality of construction material are often compromised at the time of possession and are subject to change at the time of delivery. 

Extra money for GST

In addition to the actual price of the under-construction property, you will also have to take into account the tax incidence of five percent of the total cost of the property. Furthermore, stamp duty and registration charges will add up numbers, resulting in a heavy expenditure on taxes. Affordable homes priced under Rs 45 lakh attract one percent GST of the total cost of the property, as per the new regulations.  


Pros of ready to move in flats in Kolkata 

ready to move in flats in Kolkata: pros of ready to move in flats in Kolkata

Possession with immediate effect

As opposed to the long extended window period between the buying stage and delivery timeline with under-construction projects, ready to move in flats ensure immediate availability. One of the biggest advantages of a ready to move in flat in Kolkata is that you don’t have to face the trouble of paying rent, and EMIs. You only need to complete the documentation, make the payment and move in, all this without worrying about the waiting period. Zero encumbrances and a comparatively hassle-free possession with immediate effect definitely add to the advantage of a ready to move in housing unit. 

No discrepancies in features and amenities  

You need less imagination with ready to move in housing units. In other words, you will know what you are buying. You can verify the quality of the ready to move in flat before you invest in it. This, therefore, becomes one of the biggest advantages of a ready to move in housing unit as the set up ensures that there are no discrepancies or surprise endings with regards to amenities, layout, and other important features listed in the sales brochure. You get what you have paid for. 

Free from GST Implication 

You may also get a good chance to save on GST with your purchase of a ready to move in flat in Kolkata. As per the recently implemented Goods and Services Tax (GST), a five percent tax is levied on the purchase of under-construction residential properties that do fall under the ambit of affordable housing. Ready to move in properties are hence exempted from GST charges.

Furthermore, the reduction in the latest stamp duty, lowest interest rates, and an increase in demand for ready homes has resulted in exceptional demand, especially from the NRI audiences. 

Better developed physical and social infrastructure

Ready to move in residential units are usually surrounded by a developed infrastructure, as opposed to under-construction flats that choose areas around developing housing hubs. With good social infrastructure, there are better possibilities for schools, colleges, hospitals, malls, road infrastructure, among others.  

With the absence of existing infrastructure in developing localities, the price of the under-construction property may drop, however you should also be patient as physical and social infrastructure may take a longer time to develop in areas with abundant cheap under-construction housing units in the vicinity.

Cons of ready to move in flats in Kolkata 

ready to move in flats in Kolkata: Cons of ready to move in flats in Kolkata

Price

The most obvious disadvantage of buying a ready-to-move housing unit is the higher cost as compared to an under-construction property. 

Quality of construction 

With under-construction property, you can evaluate the work progress, in addition, you also have the opportunity to gauge the quality of construction, the materials used, the strength of the foundations etc. Ready to move in housing setup allows you to evaluate the property from such deeper angles.

Age of the property

When you are planning to buy a ready to move in flat in Kolkata, you should take into account that you might not always get a brand new home. Buyers have to anticipate that the property has been for sale for a long time. In such cases, if it has not been maintained properly, it may have the shortcomings of old construction. 

Limited choice

The options for ready to move in flats in Kolkata may be limited in comparison to the large inventory of under-construction flats. With under-construction projects, buyers have greater options to choose from including the floor, location, or proximity to elevators, etc. 

In closing

As the lockdown eased down, substantial traction was observed in the real estate segment with buyers once again beginning to search for properties. In major metro cities, the real estate prices dropped by up to 5% in the April-June quarter. Studies have established that the share of ready to move in residential properties is anticipated to increase and may reach 30 percent during this fiscal in the sector of overall housing sales. 

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