Slow Down In Funds and the Pressures of RERA Are Haunting Builders in Noida
Delhi has two expressways, east and south, that connects the city to NCR. Both these expressways have been opened up for development for the real estate players. Since then, Greater Noida has witnessed rapid development and infrastructural growth.
Delhi has two expressways, east and south, that connects the city to NCR. Both these expressways have been opened up for development for the real estate players. Since then, Greater Noida has witnessed rapid development and infrastructural growth. But lately Noida has seen dip in the property prices. Some of the attributing causes for the dip include the failure by realtors to pay and raise funds. This paucity in funds has slowed down the construction process. Firstly there was a slump down in funds and to add to it, the in-completion of projects have further led prices to fall as buyers are moving to other projects.
For example a 2 bhk apartment in Noida expressway has remained stagnant at the rate of 4000–7000 since the last couple of years. With the paucity in funds, project undertaken by even the big players are running behind schedule.
Looking at the projects infrastructure, there has been yet another big issue faced both by the builders and even the best builders in Noida extension. An article published by the Economic Times stated that more than 50000 new apartments in Noida extension do not have basic infrastructure like roads, streetlights, sewerage or even water lines. With majority of the residents belonging to the mid segment, the connectivity issue has become a big concern.
Some blame the builders while the others the government for the lack of such infrastructures. But one thing that is of utmost priority is the working together of the developers and government bodies to resolve the deadlock as soon as possible.
All the more, the implementation of the RERA and GST has further worsened the situation for developers. Under the new real estate tax framework, if the developers are not able to finish the project in time, they will have to pay a penalty to the buyers. Under the new law, builders can acquire partial and complete certificates. Partial completion certificates are given to builders once authorities have inspected the phase developments of the project. A buyer can purchase sale deed once a developer acquires this partial certificate. But if the home buyer takes possession of the property before the developer acquires complete certificate, then in case of untimely project delivery, the buyer cannot seek protection under RERA; the developers are not obliged to pay the penalty. A complete certificate is given when the project has been finished. This includes all the specifications like amenities and facilities that the project mentioned
The slowdown in the funding, fall in prices and the pressures of the new law have led realtors desperately trying to push buyers into taking possession though they haven’t acquired the complete certificate.
With so much happening, home buyers really need to do a thorough research on the developers, the progress of the project and the developments in the market before making a choice to take possession of property.