RTMI homes: A lucrative investment option for today’s home buyers

[] As the world continues to adapt to the ever-changing new normal, the residential real estate market is going to continue to see the onset of new demand trends

Consistent consumer demand throughout the pandemic has reaffirmed residential real estate as the safest asset class to invest in. Above all, home buyers have demonstrated an inclination towards investing in ready-to-move-in-homes (RTMI homes). According to a recent PropTiger report, demand for completed residential properties is on the rise, as compared to under-construction flats. The share of RTMI homes among total housing sales in 2020 rose to 21% from the previous year’s 18%. A total of 1,82,640 units were sold in the 2020 calendar year, of which 21% were in the RTMI category.

With the hybrid-work model taking over, owning one’s own home has continued to gain significance. Factors driving this continued demand have been positive consumer sentiments, low home loan rates and an increase in hiring by the IT/ITeS sector. This has assisted buoyant demand for residential real estate, particularly for villas, villaments, plotted and integrated developments, reflecting the values consumers have placed on community, neighbourhood, expansive spatial design, amenities and services. Luxury RTMI residences, on the other hand, have witnessed persistent interest throughout the year. This interest is peaking around RTMI homes from trusted developers, as it eliminates delays in possession. Demand in the luxury housing market is not driven solely by attractive offers but by HNIs and UHNIs who self-finance their purchases and have less dependence on home loans.

As the world continues to adapt to the ever-changing new normal, the residential real estate market is going to continue to see the onset of new demand trends. Thanks to the evolving consumer shift towards high-end developments that provide spaces for live-work-play, boosted by the pandemic, developers have pivoted to RTMI luxury homes that cater to modern consumers’ global lifestyles.

Benefits for home buyers when investing in RTMI homes

There can be uncertainties around investing in long-term projects, including delayed project completions and deliveries, due to the impact of global and macroeconomic factors on the sector. RTMI homes have always been one of the safest investments, primarily due to a lack of delay in gaining ownership. Furthermore, after the implementation of the RERA Act, developers are obliged to provide home owners with an estimated deadline for delivery.

When opting for an RTMI home, home buyers have the benefit of seeing the final product before making a purchase decision. Uncertainties about the quality of construction, space and size of rooms, views from the apartment and other available amenities are reduced, making the buying process simpler. There are also no EMIs or dual expenses on bank loans when investing in RTMI homes. The additional advantage is that they drive immediate dividends via renting them out. All RTMI homes are exempt from GST on flat purchase. Hence consumers will save on the 5% GST, which is applicable only on under-construction properties. Finally, in contrast to under-construction properties, RTMI homes offer buyers access to instant tax benefits when availing home loans.

[] All about home loan tax benefits

During the pandemic, consumer preference shifted dramatically from renting to home ownership. Home buyers have demonstrated a greater inclination towards branded developers and those with an impeccable track record of execution. This stands true for even under-construction properties.

The Covid-19 pandemic has compelled developers to re-think project planning. The ‘new normal’ calls for homes that are sensitive, sustainable and future-ready. Home buyer focus will shift to amenities and features that address lifestyle choices, including turnkey homes, low-density spaces, managed residences, and concierge services. Thanks to changing consumer preferences, RTMI luxury products with no disruption-in-services will continue to sustain home buyer interest, enabling hassle-free living.

The real estate sector in India is now diligently working towards a path coupled with both, innovation and the aim of building a cohesive strategy for business. For a buyer, a home experience is no longer about the inner look and feel alone but also how the project is planned, developed and maintained. In the days ahead, home buyers will invest in homes that cater to preferences across age groups, extending the dream home beyond just being an investment.

(The writer is president – residential, Embassy Group)

Copyright belongs to:

Debora Berti

Università degli Studi di Firenze, IT

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