Perks of investing in under-construction projects in Chennai

India's real estate sector is expected to touch a US$ 1 trillion market size by 2030.1 Be it great returns, steady cash flow, long-term security or tax advantages, investing in real estate will always bring you numerous benefits. 

Making well-informed decisions when it comes to investing in real estate is dependent on numerous factors like location, price, developer, connectivity and much more. We think it is wise to go with the popular saying ‘Don’t wait to buy real estate, buy real estate and wait!’ So when you are searching for a home in Chennai, and you have the luxury of time, then buying an under-construction property in Chennai will prove to be a smart investment. 

Why are under-construction projects sought after?

One of the reasons that could be deterring you from investing in under-construction homes could be the delays in project completion. But with RERA regulations in place, the developers are liable to pay you compensation if the property is not delivered on time. 

Owning a home is on everyone’s bucket list. Getting a dream home within a budget is even better. The benefits of buying an under-construction property in Chennai don’t just stop at the budget. 

Let’s explore some of the other top benefits of buying an under-construction property in Chennai:

1. Better Appreciation Value: when you invest in a property that is under construction, the value of the property and the value of the areas around it will grow along with it as well. And depending on the location, upcoming infrastructure and employment hubs, the return on investment will continue to increase for under-construction projects.

   As the construction progresses from booking to possession, the price of the property is bound to increase. According to Gulam Zia, Executive Director at Knight Frank India, under-construction property investors can gain from a lower entry price and benefit from rental returns or appreciation that usually come with construction and location infrastructure progress.

2. Economical Option: one of the best benefits of buying under-construction properties in Chennai is that they are cost-effective. There is a definite cost advantage when buying a property that is still under construction, but you need not choose a property just because of its low cost. Ensure you are going with a reputed builder while having a clear understanding of the size, layout of the flat, the project completion and delivery timelines and the amenities and facilities offered before investing.

3. Flexible Payment Option: the payment schedule for an under construction flat will be in line with the varied and scheduled construction phases. You have the option to pay in a relaxed way and as the construction progresses. In the case of flats that are still under construction, some developers can also offer discounts and provide ease of payment terms like a grace period when you are not required to pay EMIs.

   Most often only 3-5% of the property value is considered as the booking amount following which 10-25% can be paid in the months to come or within the year giving you ample time to arrange finances.

4. RERA Compliance: RERA has been implemented in 36 Indian states and union territories to protect the rights of home buyers like you. Post RERA, booking a unit in an under-construction project is an added advantage as it ensures the buyer is safe and secure. 

   Section 13 of RERA specifies that no builder shall accept an amount more than 10% of the cost as an advance payment or an application fee without first entering into a written agreement for sale and registration of the sale agreement. 

   This makes flats or villas that are under construction even in prime locations, a viable and cost-effective option for buyers. All under-construction properties are registered under RERA to carry out a transparent construction process. You can get information on such homes via the RERA websites of your respective state. 

5. Time & Flexibility to Design: Another benefit of buying an under-construction property in Chennai is the ample time you can have to plan and design the interiors of your home as per your liking. At this stage, it will be easier to make creative decisions on decor detailing. When you have the time to move in at your pace, you are under much less pressure to decorate the home. 
   
   If you are looking at investing in a home in Chennai, then check out Brigade Xanadu, the premium project of the Brigade Group located at Mogappair West which is just 10 minutes from Anna Nagar. Another landmark address in the heart of Chennai’s IT corridor that could interest you is the Brigade Residences at the WTC, Perungudi. Both these projects offer many amenities that make for a truly extravagant living.

References:

1. https://www.ibef.org/industry/real-estate-india

2. https://timesproperty.com/news/post/under-construction-homes-popular-blid1622