Avoiding Housing Project Delays: A Homebuyer's Guide to Due Diligence
Close to 2000 under-construction housing projects remain stalled, jeopardizing consumers' investments. Homebuyers must do their due diligence when choosing a real estate development partner.
Real EstateHousing Project DelaysDue DiligenceHomebuyersPropequityReal EstateSep 12, 2024
Homebuyers are persistently seeking solutions to either reclaim their principal investments or secure possession of their desired residences. With prices rising sharply over the past couple of years and demand showing early signs of stagnating, the possibility of more projects getting stalled in the near future cannot be ruled out. In such a scenario, experts suggest that homebuyers should conduct thorough due diligence when choosing a real estate development partner.
Due diligence is essential to avoid housing project delays. However, many homebuyers lack the necessary approach, comprehension, and expertise to conduct a thorough due diligence of properties. This is where professionals can help. Reputed property consultants, for instance, can provide valuable insights into a developer's strength areas, delivery record, financial position, and weaknesses that may lead to project delays.
Additionally, services like PropAlert, offered by PropEquity, can provide regular updates to homebuyers about the progress of construction activities in housing projects. This platform enables homebuyers to track the development of their under-construction properties with ease.
In conclusion, it is crucial for homebuyers to conduct thorough due diligence prior to selecting their ideal residence. This practice is essential for safeguarding their hard-earned finances. Engaging a professional who closely monitors real estate trends or considering specialized service options could prove to be a wise decision.
Real estate developers, such as Jaypee Infratech Ltd, have been known to disregard RERA orders, making it challenging for homebuyers to recover their investments. The implementation of RERA has brought some degree of transparency, but it still remains a work-in-progress.
Experts caution homebuyers about the myth surrounding lucrative returns offered by real estate players. Certified Financial Planner, Lt Col (Retd) Rochak Bakshi, says,
Frequently Asked Questions
What is the current state of under-construction housing projects in India?
According to PropEquity, nearly 2000 under-construction housing projects, comprising over 5 lakh units across 44 cities, remain stalled.
Why is due diligence essential for homebuyers?
Due diligence is essential to avoid housing project delays and to safeguard homebuyers' hard-earned finances.
What services can homebuyers use to conduct due diligence?
Homebuyers can use services like PropAlert, offered by PropEquity, to track the progress of construction activities in housing projects.
What are the challenges faced by homebuyers in recovering their investments from stalled projects?
Homebuyers face challenges in recovering their investments from stalled projects due to the lack of enforcement capabilities of RERA Authorities and the disregard of RERA orders by real estate developers.
What is the role of RERA in regulating the real estate industry?
RERA has brought some degree of transparency to the real estate industry, but it still remains a work-in-progress.
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