COMPARISON BETWEEN READY & UNDER CONSTRUCTION APARTMENTS

For apartment buyers, one of the most arguable questions is whether to go for ready to shift in flats or under construction ones. Of course, choosing a property depends on several factors including personal preference and affordability. However, it is natural for a buyer to go through an apartment comparison period before engaging in any transaction.

Both under construction and ready to shift in flats serve different purposes and buyer intents. Hence, what might seem like a great deal for some might not be suitable for others. Then again, it is crucial to understand the investment benefits between ready vs under construction flats. If you are planning to purchase an apartment in Dhaka, take a look at the apartment comparison between ready and under construction properties.

Price Factor

Usually, the first thing to catch your eyes is the monetary value of the property. Above all, the flat has to be within an affordable range to be purchased. Apartment price depends on several factors, and one of them is the construction status.

There is a fine difference in price between ready vs under construction flats. It is apparent that an under construction property is less expensive than a ready flat of the same category and quality. The main reason is the late consumption and time value of money. Furthermore, purchasing an under construction property gives the developer a surge in their cash flows. That is why, in many cases, developers are willing to sell an apartment at an astonishingly low price to speed up the construction process.

On the other hand, a ready flat is available almost instantly after the final transaction. It saves from having to pay rent over while you still wait for an apartment you’ve already bought. Plus, demands for these apartments are comparatively higher and automatically adds to the premium price tag.

Return on Investment

A fundamental apartment comparison factor is the return on investment. Regardless of the purchase intention, you as a buyer should choose the option that generates the best returns for you; be monetary or other benefits like luxury, safety, and comfort.  

Generally, under construction apartments generate a higher yield mainly because of two factors, time and the price appreciation of the property. Since you are purchasing the apartment very early, you enjoy a discount. Secondly, the Bangladesh real estate market is experiencing a major growth at the moment. Hence, apartment price will automatically go up with the market and demand. So, even if you decide to sell the property before the handover date, there is an excellent chance to earn a healthy return!

Then again, high return always comes with high risk. It is not uncommon for developers to miss the delivery deadline. Also, during the period, construction material prices can go up, market interest can change and impact the property’s funding. All these complications can further delay your handover date. The longer you wait, the higher the risk you will have to face. That’s why between ready vs under construction flats, it is relatively less risky to opt for the first one. Even if you want to buy an under construction property, it is better to know risks associated with apartment purchases and check the background of the developer first.

Implementation of The Plan

Any property always comes with a plan and the plan has to be approved by the concerned authorities. Usually, developers construct the building as per plan, but unless you are purchasing from an eminent developer, again it might turn out to be a considerable risk.

For ready to shift in flats, everything is right in front of the eyes, and there is hardly any scope for discrepancies with the original layout, features, and amenities. However, for ongoing construction projects, cases might be different. Even though the plan would be included in the contract, you can not disregard the risk entirely. Therefore, between ready vs under construction flats, the first option is more preferable in this regard.

Customizability among ready vs under construction flats

A massive advantage of under construction apartments is you get to check the quality of the property before completion. Since the construction is not finished yet, as a buyer, you get to share your opinion with the developer and make feasible changes. For example, you can ask for a particular flooring, an extra kitchen cabinet or a partition in the common room.

Not that these changes cannot be made in a ready-made apartment, but the responsibility falls entirely on you. Also, for massive changes like floor layout or added partitions, you will need to seek help from the developers during the construction period. So, if you have such requirements, an under construction property could be the better option.

Age of The Property

Property age is a concern during apartment comparison, depending on what you are looking for in the market, especially for brand new apartments. In many cases, ready flats remain unsold for a very long time. If they remain unoccupied, chances are that these apartments were not maintained properly. Still, they would be brand new properties but are perhaps no longer up to a standard quality. On the contrary, there is hardly any scope of this happening for an under construction property. As soon as developers are ready for the handover, the apartment is yours!

Before you come to a purchase decision, it is essential to do apartment comparisons for a fruitful investment. Do your research accordingly, and for any help, you are always welcome at Bproperty!