With festive season round the corner, RERA has come ahead with a good news of forcing builders to complete their long due projects. The builders have now been asked to complete the projects and concentrate on selling of their house stock to home owners. In the past few years, when demand was strong builders came up with series of projects. However, this shall not be the case this year. Real estate (Regulation and Development) Act 2016 shall put more focus on old project completion rather than starting with new ones.
Builders of delayed projects are thinking of joining hands with buyers by opening an escrow account. The money collected in the account, shall be dedicatedly used for completion of buildings and then offering the place to buyers. Lotus Zing project company, is also planning to open escrow accounts by associating with 2500 homeowners. The escrow accounts shall be opened with the welfare association, wherein close monitoring shall be done to complete the project and provide homeowners with immediate results. Even Noida and Greater Noida authority, have come up with the procedure of opening joint accounts with real estate developers that shall ensure faster delivery and building of property.
Samantak Das, chief economist and national director at Knight Frank (India) Pvt. Ltd. confirms that there are more than 2 lakh of unsold units within Delhi NCR. Hence the new supply or launches in the market shall be dedicated only to locations after analyzing the unsold inventory area. Areas with high unsold inventory may not see any new launch in the coming time. Further he adds, buyer should only invest in projects where developer has shown the capability in history to deliver projects within time, in spite of stressful market conditions.
Talking about new launches, Praveen Jain chairman and managing director of Tulip Infratech and president of NAREDCO said, that market in Gurgaon is going to witness more focus on completing and handing over units to buyers. Moreover, for projects which have witnessed delay in completion like Tulip Violet shall be offered at a discount of 10% to the buyers. Hence this festive season buyers can approach to buy units, which earlier seemed to be out of reach for them.
The new projects shall only be launched in areas, wherein the builders have already gained possession of land, or where demand of units is much more than the availability of unsold units. One of the developers i.e. Lotus Green Developers Pvt. Ltd. is going to launch a new project in Noida Sector-150 which shall spread over 300 acres. The project shall be initiated in Joint Ventures with Tata Housing and Godrej companies. Hence in near future, people can expect to see the launch of 800 apartments, having 2 and 3 BHK accommodations.
With so many things on going in the real estate market, it is recommended that buyers should be careful while choosing builders and their projects. A careful study should be done about the builders and how many projects they have completed till date. Such steps are necessary to take, in order to ensure safety of money and have possession of property within due time.