Indian real estate is not what it used to be 5 years ago. The boom in the market is dampened. But it would soon rise from the ashes like Phoenix and reclaim the long lost glory. How can we say that? Because with the introduction of Real Estate Regulatory Act, a lot of positive changes are already visible. By law, if the developers are unable to deliver the project on time, they have to pay the penalty as some percentage of the property price. As such, the stress of timely project completion has translated from the buyers to the sellers.
We know that the project delays is one of the most common issues related to the Indian real estate. The projects get delayed due to lack of proper permits, land acquisition issues, lack of required funds or quarrel over the possession of the land. Up until now, the buyers were at the disadvantage because they had to pay the rent as well as the EMI on the loan till the property is ready to move. The plane has shifted.
Since the timely possession is a win-win situation for both the seller and the buyer, the developers are trying their best to finish the project on time. They are adopting various ways to ensure this. Let us see what they are doing for the same.
1. Small developers are joining hands and funds
The brilliant solution to the funding problem is the increasing joint ventures. The small developers are mutually investing in the big project and then together reap the benefits. As such, both of them are not separately stuck in two incomplete projects, rather finishing and selling one successful project. The builders may be pitching in from the start of the project or one builder may be laying off the project and another joining in the distressed phase. They are working together to meet the deadline and serve the buyers.
2. Outsourcing the work to the professionals
Instead of doing all the work in-house, the developers are outsourcing the work to architects, designers, construction firms etc. to speed up the process. Since the work is carried out by different agencies at the same time, the manpower increases and the time in the project decreases. The third parties are initially carrying out the work on their own money if the funding is an issue. Delivering the project on time, the profit is shared and the proud of achievement too.
3. Keeping the buyers updated with the project progress
Seeing the efforts of the builders, the buyers are also showing a positive attitude towards them. Instead of suing them for the delay, they are letting them some months of time to complete the project. The developers are sending the updated information to the buyers to keep them notified. Thus, they have the realistic expectations about the completion of the project. This is increasing the transparency which is the guidelines by the RERA.
4. Selling off projects to some other builders
The builders who are unable to pull off the project initiated and cannot get the proper funding are selling them to other builders who are ready to take off from the present stage. As such, the builder 1 does get the credit, profit and penalty from the project. It is tough to start any work from ground zero, hence an opportunity for the big shots to buy a semi-completed project and mould them accordingly.
The on-time possession of the property would help regaining the trust of the investors in the Indian real estate and the investment would soon increase. The builders are certainly taking a positive step, hope the situation will improve for good. For any Jaipur property related query, please contact us.