Why Ready To Move Villas/Flats Are So Expensive

Ready-to-occupy villas and apartments are witnessing higher prices today due to a combination of demand-driven, economic, and infrastructure-related factors. This trend is visible across India and is especially pronounced in growing cities like Coimbatore.

Here’s a clear breakdown of the key reasons:

1. High Demand for Ready-to-Move Properties:

• Immediate Gratification: Buyers prefer ready-to-occupy homes to avoid construction delays, uncertainties, and long waiting periods. These homes can be occupied immediately or rented out for instant income.
• Inflation Hedge: Real estate is considered a stable, tangible asset during inflationary periods, making ready properties an attractive wealth-preserving investment.
• Tax Benefits: Home loan interest and principal repayments provide tax benefits that buyers can start availing immediately with ready-to-move properties.
• No GST: Ready-to-move homes with completion certificates are exempt from GST, unlike under-construction properties, resulting in significant cost savings.

2. Rising Construction Costs:

• Material Price Increase: Prices of essential construction materials such as cement, steel, sand, and aggregates have risen consistently.
• Higher Labor Wages: Both skilled and unskilled labor costs have increased, adding to overall project expenses.
• Fuel Cost Impact: Increased fuel prices affect transportation and machinery operation, directly increasing construction costs.

3. Land Cost Appreciation:

• Urban Land Scarcity: In rapidly developing cities like Coimbatore, availability of prime land is shrinking, pushing land acquisition costs higher.
• Growing Demand: Urbanization and migration toward Tier-2 cities have intensified land demand.

4. Infrastructure Development:

• Government Initiatives: Investments in metro rail planning, airport expansion, road widening, and smart city projects enhance urban appeal and property values.
• Improved Connectivity: Enhanced road networks and public transport reduce commute times, increasing the desirability of nearby residential areas.

5. Economic Growth and Disposable Incomes:

• Strong Economic Base: Coimbatore’s thriving IT, manufacturing, and textile industries generate employment and boost household incomes.
• Affordable Home Loans: Relatively stable home loan interest rates make homeownership more accessible, encouraging buyer demand.

6. Limited New Supply in Prime Areas:

• Regulatory and Land Challenges: Delays in approvals and land acquisition restrict new project launches in central and well-developed areas.
• Developer Focus Shift: Many developers prioritize mid-range and luxury projects due to higher demand, limiting affordable ready inventory.

7. Lifestyle and Amenity Premium:

• Gated Community Living: Ready-to-occupy villas and apartments often include premium amenities such as clubhouses, swimming pools, gyms, landscaped gardens, and 24/7 security.
• Modern Design and Quality: Contemporary architecture, smart home features, and superior finishes attract aspirational buyers willing to pay a premium.

In cities like Coimbatore, factors such as the rapid growth of the IT corridor (Saravanampatti and Peelamedu), its popularity as a retirement destination, and continuous infrastructure upgrades are driving property value appreciation. While ready-to-occupy homes come at a higher price, they are widely viewed as a secure and future-ready investment.