NCR (National Capital Region) recorded the least price difference between RTM and UC homes at three per cent, revealed Anarock data.
The average prices of RTM homes were Rs 4,530 per sq. ft. while for UC homes it was Rs 4,410 per sq.ft.
Pune had the highest price difference between RTM and UC homes at around seven per cent.
The average price of RTM homes is Rs 5,600 per sq.ft. and UC homes are priced around Rs 5,200 per sq. ft.
Previously, the ultimate selling proposition of under-construction homes was significantly lower prices over ready-to-move options," says chairman, Anarock Property Consultants, Anuj Puri.
"The RTM premium was primarily on the 'instant gratification' quotient, immediate freedom from rent and zero construction risk. In the last two years, the price gap between these two categories has eroded y-o-y," he said.
"Along with the other benefits that ready homes provide, they attract no GST," Puri noted.
This reducing price gap is highly favourable for end- users as well as investors.
End-users prefer to see the end-product rather than a floor plan and are usually eager to get off the rental treadmill.
Investors previously chose under-construction homes for their lower prices and the compounding capital appreciation as projects neared completion.
"Perhaps the main reasons for the reducing gap is that developers are reluctant to hike prices of ready properties amidst the overall slowdown," said Puri.
"In a market scenario of limited housing sales, price hikes dampen homebuyer sentiments further. Ready unsold stock will not find many takers if prices increase," he said.
In Hyderabad, the price difference in 2019 is six per cent. The average price of UC homes in 2019 was at Rs 4,015 per sq. ft. while those of RTM properties was Rs 4,250 per sq. ft.
Bengaluru witnessed a price gap of around five per cent - UC homes cost Rs 4,820 per sq.ft. and RTM homes are Rs 5,050 per sq. ft.
Mumbai Metropolitan Region (MMR), Chennai and Kolkata saw a price disparity of just four per cent between ready and under-construction homes.
In MMR, the current average price of UC homes is Rs 10,075 per sq.ft. while RTM properties are priced at Rs 10,460 per sq. ft.
In Chennai, average prices of UC homes currently are at Rs 4,700 per sq.ft. and Rs 4,880 per sq. ft. for RTM homes.
In Kolkata, the average price of UC homes is currently is Rs 4,265 per sq.ft. and Rs 4,420 per sq. ft for ready homes, it was noted.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.