A flat can look very different on a brochure from how it feels when the building is ready. Buyers can see the finished structure, assess the quality of the work and get a clearer picture of what they would be paying for, rather than relying on plans and promises about a project still under construction.
There is another element that cannot be shown in a floor plan: the people who already live there. An occupied building has an established community, and prospective buyers can see the residential environment that has taken shape around the homes.
That community can become a factor in attracting buyers to a completed project, according to Oberoi Realty Chairman and Managing Director Vikas Oberoi. Speaking during the company's second-quarter earnings call, he said people who had not bought into a project earlier could become interested once the building was ready and its residents had formed a community.
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“We've not only made a building but created a community,” Oberoi said.
Ready Homes
Oberoi cited the company's Sky City project, saying residents were attracting prospective buyers and contributing to a rise in prices. He said completed buildings could command price appreciation because buyers could assess both the quality of construction and the community already living there.
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The point also came up in a discussion about the company's Mulund projects, Eternia and Enigma. Oberoi said the buildings were being well received as they took shape, with people in the surrounding area beginning to see the projects develop as expected.
That progress, he said, was helping improve sales momentum in the area. The comments suggest that a project's appeal can change as construction advances and the finished development becomes easier for prospective buyers to assess.
Pricing Plans
The role of a completed building in attracting buyers is one part of how developers approach pricing. DLF, for instance, uses a pricing algorithm that increases prices with each sale, according to Managing Director and Chief Business Officer Akash Ohri. He said the increases were not linked to the pace or number of sales.
Oberoi described a different approach. He said he would rather continue selling homes than push prices higher, adding that increases depended on the project and the scope for further appreciation.
At Oberoi Realty's Oceanic project, he said, prices had risen from Rs 1.5 lakh per square foot to Rs 1.7 lakh-Rs 1.8 lakh per square foot.
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