Indian Real Estate market is going through a slow phase. The completed projects are accumulating and buyers are not showing any interest in the properties completed more than a year ago. As such, the builders are forced to sell the properties at loss. This is not it. There are many issues trolling the realty market and making it less attractive than it used to be a year ago.
1. Unsolved disputes
The land disputes are very common in India. And the real tragedy is that the disputes filled are not solved in due time. The construction gets halt for the time being and thatâ€™s a loss for the developers. Not only developers, those buyers also are in the difficult situation who have to pay the EMI for the house and the rent for the present accommodation too. RERA says that the real estate disputes should be solved within 60 days of the registration. So, thatâ€™s a hope for the real estate market.
2. Delay in project approvals
There is no law that guides the market. Like the unsolved disputes, one more grave issue is getting all the approvals from the authority. The builders need to have the construction approval, then completion certificate and then occupation certificate from the Govt. before handing over the keys to the buyers. The process takes quite some time and many builders sell the properties without these approvals getting themselves and the buyers in the legal complications.
3. The buying cost
While the young generation is earning more than before and buying the houses, still the cost of buying is a concern. The tax system in India is good but not the most convenient one. The GST is supposed to improve the problem but that is to be seen. The stamp duty, registration charges are to be paid extra which sums to a huge amount. Sometimes, a middle-class person arranges for the house but cannot arrange for these additional costs.
4. Lack of funds with the developers
Many projects are incomplete in India because the developers do not have the funds to take it forward. They are largely dependent on the initial booking amount from the buyers. Since the buyers are preferring the ready to move projects, fewer under-construction projects are getting the bookings and funding. The RERA act is also making the scenario tough as if the developers fail to provide the possession on time, they will be penalised. The competitive real estate world needs a partnership among the builders, some real solutions to the project delay problem.
5. No proper construction training
We have the architects to plan the house but the construction workers are the labourers who work to earn the daily livelihood. They are not trained before employing to construct. We are also not at the bar with the countries which are using the modern technologies to get the work done quickly and with the expertise. When the workers are given the knowledge of what they are doing, the work can be done more efficiently. The mass construction of the affordable housing solution would provide a roof to all by 2022 as the Govt. expects.
With the new reforms going on, the condition of the Indian realty market would improve and benefit both the developers and the buyers. There would be housing for all but at the same time, no accumulation of the unsold inventories. Let us hope for a better future.