One has to admit to the fact that the Indian property market has contributed immensely towards uplifting the nations economy. With most of the metropolitan cities encouraging social and civic infrastructure development, residents are capitalizing on key opportunities in order to get that much closer to their dream home. Recent realty trends showcase that people who save up on funds on a monthly basis as tenants are now transitioning to become first-time property aspirants. With the rise in demand for comfortable and affordable residential structures, property developers are focusing on devising affordable strategies to release their excess inventory. Before governing bodies like RERA and tax reforms like GST were implemented, property aspirants were practically at the mercy of developers. Expectations set were not met, which led to delay in project delivery. This isn’t favorable as residents need to devise economical budgets and move into their home as and when it is ready for occupancy. Residents can now breathe a sigh of relief as they are eligible for a refund in case of any delay of project delivery pertaining to the flat or apartment that interests them.
According to the Apex Consumer Commission, residents who have already paid for flats which are under construction can now file for refund if the flat delivery is delayed by more than a year. In the past, the Supreme Court has repeatedly rolled out notices that property developers aren’t allowed to delay project delivery after giving the full disclosure in regards to project details. However, a specific time frame wasn’t specified so residents could claim for a refund. This is a bold move be governing bodies as realtors can now amend their strategies and deliver on expectations that were set at the initial stage. With property investments being long-term in nature, residents should consider consulting with realty advisers for an in-depth knowledge of the property market. This would help them analyze their priorities and work with reputed builders who have a steady record in the past.
Brings a sense of purpose and trust in the Indian real estate market
The Indian real estate market was in a state of bother say 10 years back. Residents who were ready to invest their hard-earned money into residential properties were faced with a dilemma as they had to solely depend on the information given by the builder. There was no guarantee in terms of project delivery or project specifications and features being altered. However, the good news is that RERA and tax reforms such as GST has brought about a sense of trust and purpose in the realty market. With in-depth scrutiny, property developers are on the verge of devising creative strategies in order to avoid hefty penalties. On the contrary, investors can plan their financial agenda which would help them effective allocate their budgets keeping the primary expenses in mind. It doesn’t serve any purpose approaching banks for home loans if the project is delayed. Leads to complexities which isn’t great news for a first-time property investor.
Commission lays stringent foundations that builders need to refund the paid deposit along with 10% interest
This move by the Apex Consumer Commission has proved to be worthwhile as delay in projects could stall inventories being stocked for a long period of time. Also, since the demand for affordable housing is prevalent, releasing stocked up inventories for higher prices attracts a market which is niche. Now builders are notified that any delay in projects which goes for more than a year would be an eligibility clause for investors to file for a refund. In case of any delay even after the deadline provided by the Apex Consumer Commission, builder have to refund the entire amount paid by the customer along with 10% interest. This would change prospective mindsets and enable uniformity in the market. In conclusion, the only way forward for a stable real estate market would be to analyze residential expectations, strategize priorities and deliver keeping the approach customer-driven.