Realty buys: The wisdom of picking new projects over completed ones

Historically, homebuyers have favoured completed projects over new projects due to uncertainties and limited access to information regarding the viability of new developments. But times have changed. Today investors can access a builder’s history and financial stability, the project’s construction timelines, amenities, floor plans and other details from verifiable sources such as Real Estate Regulatory Authority (RERA). There are also other platforms that offer reviews and collated data that can help in making an informed decision. Armed with this information retail investors are better off pitching their money in new upcoming projects. Here are some reasons why:

New homes, new amenities

New projects are likely to offer several benefits that resonate with modern homebuyers. From contemporary amenities to energy-efficient designs and cutting-edge technology integration, most developers are planning new homes such that they deliver a lifestyle of convenience, comfort, and sustainability. 

For example, aligned to industry-wide efforts towards carbon neutrality by 2030, several new projects   have solar energy and waste management infrastructure. Similarly, with growing interest from women homebuyers, developers are focusing on safety and social infrastructure around their projects. To capture the attention of millennials, modern amenities and technology integration has become a priority for developers. Such projects show promise of long-term returns on investment, attracting investors seeking both financial growth and social responsibility.

Price appreciation

As in the past, new properties tend to appreciate in value over time, offering investors the potential for significant returns on their investment. But now, with demand at a decadal high, prices of under-construction properties are also rising rapidly, making them a lucrative investment option. Cities like Bengaluru (4.9% QoQ), Chennai (6.1% QoQ), Noida (8.1% QoQ) and Greater noida (16.1% QoQ) amongst others, demonstrated consistent increase in prices of under construction properties between October and December 2023. 

This upward trajectory is further propelled in projects which offer the allure of technology integration, such as smart home features which are slowly becoming prevalent in new constructions. From automated systems to energy-saving devices, these technological advancements enhance the overall appeal and functionality of new homes, catering to the preferences of modern homebuyers.

Tax breaks 

Government incentives and tax benefits further sweeten the deal for investors considering new home purchases. Section 24B offers tax benefits of upto Rs 2 lakh per financial year which can be deducted from interest rate of a home loan. Similarly, provisions of Section 80EE are aimed at loans up to Rs.35 lakh for properties valued at Rs.50 lakh or less. These incentives not only alleviate financial burdens but also incentivise investment in sustainable, eco-friendly properties, aligning with broader governmental initiatives towards environmental conservation and urban development.

Without doubt, investing in new projects emerges as a smart move for individuals seeking long-term growth and stability in today’s real estate landscape.