Pune Real Estate Market

"Real Estate Market, Pune" is now moving towards sky high touching prices. In some parts of Pune, rate of the property has been increased by more than Rs. 1000-1500/sq ft in last one year. It seems that most of the builders have association or as a single family and want to fill their pocket with the money at the earliest.

Hardly any builder cares the end users or customers & even they do not bother about themselves future, may be they think once the money is made, can be invested in other sector or places. Mostly builders talk about their construction cost only & hardly anyone think about their products & end consumers. Also seems they want to ruin/crash their market by themselves.

During my MBA everybody talks about the consumer market. If you want to survive in the market a company must make the product as per requirement or demand of the customer which can suffice the consumer's needs & wants. But I think real estate sector now altogether different because its builders market & only builders can dictate the market and consumers or customers have absolutely no role in the market.Today builders behave like the king - eg. This is the product we have, if you want to buy this, you will have to buy with the so & so conditions and customers cannot put a single condition from their side to builders. This kind of Market we have in our greatest & biggest democracy where only 2-3% people or even we can say lesser than this dictate the mean of democracy. So we all can imagine the life of the Aam Admi. Now its going to be even more Pathetic & Worse, if still consumer do not wake-up.

At the same time, I feel, Government of Maharashtra & local bodies have taken the contract to pull all the money from public pocket by increasing the taxes day by day. Now one more tax is being implemented in Pune or Maharashtra i.e. L.B.T. (Local Body Tax). Every department is looking at how to make more money. I used to read that every government body is formed to help the citizens or public of their respective locations or areas. But here the entire department has taken the oath to loot the public the way they want to make fool & cheat the public they will. No others have the rights against it.

If we see the "scenario or better word is trends of Pune Real Estate Market" of the last 3-4years, it has drastically changed which should not have been. Now I believe Pune Real Estate Market would go in worst condition in coming 8-10 years. 

Whenever Aam Admi think to buy home they think about whether he or she would be eligible for home loan or not & can they buy home from their salary or not. You know if a buyer is taking a home loan from any housing finance company, in returns buyer pays to respective housing finance company more than 2.5 times to the loan amount during the whole loan tenure. Imagine the financial load a property buyer would have after getting the loan disbursed. And now upar se all the taxes by the central, state & local bodies.

We can hope for the best.

Thanks Everyone!!! 

Praveen Kumar

This is purely My Personal View.

Written on 07-April-2013.

HUBTOWN COUNTRYWODDS in KONDHWA, PUNE by HUBTOWN LTD.

HUBTOWN has withdrawn his hand from Pune residential project which is currently going with the name Hubtown Countrywoods at Katraj Kondhwa Road, Kondhwa, Pune. I absolutely don't understand why so happened? May be one of the reason is current project has been delayed by 1.5-2 years and now over all brand value (branding) is degrading due to Hubtown Countrywoods.

If so, can anyone build or retain a same brand name by withdrawing his hand from existing location (i.e. Pune) where HUBTOWN has already awareness in the mind of public of Pune. What I believe/feel withdrawing hand has more negative impact in the market than continuing with the 2nd phase. Because, Hubtown Countrywoods comprises of all types of customers like localities (puneites), maharashtrian, non-maharashtrian & from overseas as well. And, they are customer, ultimate cutomer & investors. All these customers know/understand well the reasons to withdraw his hand from 2nd phase & delay in possession for 1.5-2 years. So, what company wants to make understand these customers or clients by withdrawing hand from Pune residential projects? You can only remove your demarketing by giving best quality products & services now i.e. building stronger relationships with existing & new clients.

HUBTOWN COUNTRYWOODS in KONDHWA by HUBTOWN LTD.

When better times has come to launch new projects or venturing in to new projects to generate maximum revenue then HUBTWON withdrawn. Since, now nearby area is developing, new projects are coming & now rate of development of this area would be faster than the previous because some projects on verge of completion(e.g.- ISCKON Temple) or almost ready for possession & now development will happen to fulfill the needs & requirement of those people who are going to live in recent future. So, now rate of property would also increase faster than previous in four years down the line.

We need to find solution for rebranding or better branding but here we are trying to escape from problem to rebrand the company.

Best Wishes, 

Thanks Everyone!!! 

Praveen Kumar

April'2014

(This is purely my personal views.)

RESIDENTIAL PROJECTS IN HINJEWADI :

Project Name Milange High Mont Ashok Meadows Tinsel Town The Crown Greens Megapolis EON Homes Developer Name Rama Group Mittal Brothers Peninsula Land Ltd. Kohinoor Group TCG Real Estae Kumar Properties Kasturi Housing Address Phase 3 Phase 2 Phase 1 Phase 2 Phase 2 Phase 3 Phase 3 Project Size 11 Acres 8 Acres 24 Acres 5 Acres 10 Acres 150 Acres 27 Acres No. of Buildings 7 7 29 5 9 12 No. of Floors P+14 2P+22 P+11 P+14/21 P+21 2P+13 2P+22 Total no. of Units 750 850 512 800 15000 1200 Loading 35% 35% 35% 35% 35% 35% 35% Base Rate 5150 5500 5400 5103 5500 4600 5500 Floor Rise Rs. 50 from 5th-9th & 100 from 10th-14th Rs. 60 after every 3 floors from 4th Rs.30/floor from 1st Rs. 54 from 5th-9th & 100 from 10th-14th Rs.25/floor from 4th Rs. 50 after every 3 floors from 6th Rs.30/floor from 6th PLC Rs. 100 Rs. 100 NA Rs. 50 Rs. 100 Rs. 50 Rs. 300 Infrastructure Charge Rs. 4,00,000 Rs. 5,00,000 Rs. 4,69,790 Rs. 5,25,000 Rs. 5,50,000 Rs. 4,60,000 Rs. 7,10,000 Maintenance At actuals NA Rs 3/Sq. Ft Rs 3/Sq. Ft Rs 3/Sq. Ft NA Construction Status 70% 65% 80% 80% 30% Possession Jun-18 Jun-18 Ready Homes Jun-18 Ready Homes Dec-18 Dec-18 Remarks No Pre-EMI till Possession No Pre-EMI till Possession Ready Possession Republic Day Special Rate Rs.4500/- Ready Possession Modular Kitchen, Furnished Bathrooms, AC in all bedrooms, False Ceiling, etc. This is for information only. Thanking You!!! Praveen Kumar

GST is boosting Ready Homes but what about Under Construction property

GOODS & SERVICES TAX is boosting ready homes. We had ample availability of ready homes in the most of the metro cities or tier 1 & tier 2 cities. Now ready homes is moving fast because of few reasons: 1. There is no GST applicable on it & most of the builders are saying that if you buy ready homes you will directly save the 12% of tax which means, customers get direct appreciation of 12%, also one can consider like 12% discount on property or 12% tax has been waived off. 2. Also lot of confusion in real estate industry and builders not yet ready to pass on the GST ITC benefits to its customers, so customers have only option to buy ready homes & saves 12% of tax directly. 3. Clients who have bought recently in under construction property at initial phase of the project are now cancelling their property. Since again builders are not ready to pass on the ITC benefits & shifting to ready homes.

It’s good for real estate industry to sell all ready homes inventory & start with fresh launch of the project. But real issue is, after finishing with the ready homes, does real estate industry will again be boosted? Real estate industry is really in uncertain future.

I was reading an article about DDA housing schemes, DDA had floated about 12000 units for sale under PMAYS and only 8000 applications received till the final date for this scheme. And 1^st time in DDA history has extended the date till 11^th September 2017 to receive the adequate no of applications to sale 12000 units. These flats under DDA scheme is being sold out or allotted with lottery systems. Lottery systems really looks like joke if we do not have at least same no of applications of total no of flats are being allotted. I guess DDA requires at least 2 times application of total no of flats are being allotted, since after getting application from customers lot of scrutiny happens as per DDA rules & regulations. I am sharing this because we can understand the actual reality of Real Estate industry in India. If government itself is not able sale or at least not getting the adequate no of applications, even if flats are so economical and huge subsidy under PMAYS, how can we consider this industry is doing well?

These days, I am getting lot of calls from customers having lot of queries about carpet area calculations, property rate appreciations/depreciations in present & future, GST, how as a customer can take benefit of ITC under GST in under construction property, should hold the decision to buy a flat for some time, etc. I suggest them for some of the queries, but also saying wait & watch scenario is for everyone as of now. These above queries are really hits my mind, what is going to happen with this industry and Mr. PM Narendra Modi dream to have everyone houses by 2022?

These questions are coming from customers really alarm us to take decision for better policy for real estate industry, which can really help industry to recover at the earliest that would be better for everyone. Everyone is very positive & should be for DEMONITIZATION, RERA & GST but we need to introspect if this is the scenario in real.

Happy Reading!!!

Keep Reading!!!

Every Real Estate Sales & Marketing professionals must read this article

SALES, MARKETING, CRM, SERVICES

There are different ways of marketing to target the segmented market. To get the optimum output of marketing, we required the integration & synchronization of all the tools of marketing & target customers that is maybe called as strategy that is also called holistic marketing, which enables marketers to get the optimum results.

Marketer must know their target customers to make or formulate their marketing strategy. It means you deliver your message to your target customers. To making strategy, marketer must know how to segment the market according to the product.

• Today’s scenario is to engage the maximum crowd with any of the activities, where activities give more confidence to customers to rely on the company.
• Activities can be anything thru which we can generate more crowds at the site. Eg. Social gathering, Events related to Kids, Festival events, etc. These activities will give us better word of mouth publicity that results to referral customers.
• Arrange such events where exiting clients can bring potential buyers at site, let the existing client work for us and this can only happen when trust level is at utmost.
• Transparency with the customers - maintain transparency with reference to processes from enquiry to handing over the flats.
• Make your client so comfort so that client can ask any kind of questions related to flats, constructions, quality, delivery time, company, etc. This will create client trust & confidence into builder or company, so the better experience in the mind of customers.
• Experiences can anything which client cannot measure or compare with the rate/pricing. Great customer service is exceeding the client's expectations in all areas of contact. This will always reward the builders.
• Always ask personally for water, tea/coffee, etc. if sitting or interacting with the customers, this will cost nothing but will generate good business.
• The greatest customer service is simply making the entire process user-friendly. In other words, make the process pleasant for the client.
• I always prefer to use the word client instead of customer because client conveys the meaning of a relationship rather than a simple transaction.
• Share the trends & knowledge of the market, industry, etc.
• Customers do not buys home at 1^st meeting, but they buy knowledge you share with the customers, experiences you/staffs give to the customers.
• The client wants the builder to aggressively manage the constructions, assurance of good quality, deliver a 100% clean and complete home.
• Educate the client about how the home will perform, how to conduct maintenance duties, what all are the brands of specifications, what is the warranty or guarantees normally these brands provide. Builders who acknowledge that they are the experts and take this responsibility seriously where customers show the confidence and that drive the transactions.
• Always update the clients for construction status, demand, agreement, and other processes in advance so customers do not get panic, irrespective of the situations.
• Recently, I reduced the average discounting of Rs.1,50,000/- to Rs.80,000/- in the span of 3 months only and this has been done with the help of very small tricks and tactics.

There are various media through which company target the market, especially the real estate companies but these medium has been mentioned here is irrespective of the industries.

Following are the tools or media: Below mentioned media or tools can be used partially or fully with reference to type of industries. But it must have synchronizations.

1. Collateral: 

• Visiting Cards
• Brochures
• Floor Plans
• Rate Card
• CD/DVD

2. Digital/ Internet Media: Digital marketing has a tremendous impact in real estate industry marketing. Digital marketing offers higher visibility to clients. Online marketing allows builder to measure performance in real time and make rapid changes to campaigns or content that is not performing well. You can request and receive responses from potential customers and build a relationship before the customer even calls to speak to a sales representative. More than Prospects 70% prospective clients do research online before reaching thru phone calls or sending an email to request information or visit the site office. Today’s marketer are using the social media to spread the word and reaching the clients faster ever before to communicate what the marketer wants and even the demand from potential or prospective clients for easy to find and share information will continue to drive the increased use of digital marketing in the real estate industry. Social media and a couple of digital portals which is inexpensive lead generation portals thru which we can discover better results. In real estate industry we need to be more focused on the local market. Its also very important to have the right combination of marketing methods.

Below are the digital media thru which we can reach to the prospective and potential clients:

• Website: It must have all the required details e.g. customers testimonials, floor plans, master plans, Specs & Amenities details which attracts the clients.
• Social Networking Websites:
• Facebook
• Google +
• Twitter
• Linkedin etc.
• Property Portals
• 99 Acres
• Magicbricks
• housing.com
• makaan.com, etc.
• Blog: It may be used for educate the people.
• Mobile Apps for projects
• Google Ad words
• Ad-Sense: This is one of most useful tools for real estate companies to target right kind of clients.
• Mailers, SMS etc.: This can be used to hammer the client’s mind for different reasons.
• Client portals: Clients can log in for project details and status updates, making your work flow smoother. Portals usually have a feedback mechanism so clients can directly reach to builder.

3. Events: Participating in any event is the part of more of branding & less of sales or lead generation. In the events normally companies do showcase their product to show the presence & to get the benefits in the long run.

• Sponsorships of events
• Events or activities for prospecting clients & existing clients
• Corporate activities & presentation
• PSU companies
• Property Expo

4. Outdoor Media: To keep the company presence in the market & to get the better result of the digital marketing, synchronization is very important with the outdoor media. This will keep reminding prospective clients for presence.

• Hoarding
• Site Display
• Pole Kiosk
• Gantry
• Nearby areas branding
• Transit Ads- Trains, Buses, Rickshaws, etc.

5. Electronic & Print Media: These media is used to cater the mass market & not the specific.

• T.V.
• Radio, etc.
• News Papers- Daily, Weekly, Journals
• News Letters
• Magazines

6. References: This is one of the most useful media which helps in branding as well as direct sales. Reference per lead cost is very negligible compare to leads thru other media. Builder should explore at the maximum level. Generally, builders do try to cater this but hardly any builder has the right approach to cater this segment. So, it’s very crucial for builders now these days.

• Existing client’s Referral
• Channel Partners
• Stake Holders:
• Employee
• Vendors
• Media Agencies
• Bankers, etc.

These tools may help/assist marketer for decision making for their marketing activities. Real estate companies must apply these media as per their requirements or time.

Best Wishes,

Praveen Kumar (Author)

Expert says Real Estate industry will Bumps-up due to Demonetizations, RERA & GST, and my view is opposite….

I was just wondering how Real Estate Regulatory Act (RERA) will be enforced by 31^st July 2017. Since, as per central govt. guidelines, 31st July 2017 will be the last day to implement the Real Estate Regulatory Act in their respective states otherwise central Real Estate Regulatory act will be enforced. If we see the data, approx. 40% states have not yet been finalized the final rule & worse scenario is hardly 6-7 states have started the on-line property registration for builders and even worst is few of the states in process of drafting the finale rule of state RERA. Now, only hardly few days are balance to implement the RERA across the country and government itself is not ready to implement, how a central govt. can expect builders & real estate agents to register their property on state RERA website. Website itself has not yet been made in most of the states of India. I think as of now only 6-7 states have made the website ready to register the project or as an agent as a real estate property advisor/consultant.

Scenario is now getting the worst for real estate industry after Demonetization, RERA and now GST implementation.

Whenever I read experts article on Demonetization, RERA & GST that says it will boost the real estate industry, I only feel that most of the real estate experts are the very positive and can see the long term future. Everyone was expecting, property prices will come down by 20-25% after Demonetization but not a single rupee came down in the property prices. After 5months, RERA enforced but unluckily government itself is not ready to implement RERA and few months later, GST implemented. Again experts are started saying property prices will come down but this time real estate experts are very flexible and having different views on hike/reduce of property prices. Still most of the experts’ statement says that property prices will reduce or may be no effect on prices. I would love to ask very simple question to these experts is how many builders have reduces the property prices after GST perhaps not a single builders.

I would love to share a very interesting real story. I happened to be at builder construction site in Jamshedpur, Jharkhand. I was interacting with the one of the partner of the company related to the project developments, rate, flat size, approval, sanctions, etc. I also intentionally asked about RERA to understand that really all the builders are aware the RERA. He replied very innocently what is RERA, further I tried to make him aware about RERA that RERA is an act made central government & now will be implement by state government and all the builder has to sell the flat according to the RERA. Then he said my legal person will take of all these. My main intention to share this story is most of the local builders in small towns/cities are not aware about the RERA, how government can expect to implement with what RERA meant to be. I think most of the experts will love to laugh at his statements on Demonetization, RERA & GST once they really know the ground reality in small towns/cities.

And on 18^th July 2017, one customer showed the booking form and receipt where GST has not been mentioned, service tax was mentioned. After seeing this I got confused, is really GST implemented 1^st July 2017 onwards? By forcing these rules on builders, it also means government does not want that small/local builders not run their businesses.

This is ground reality. Experts may not be aware of all this.

It seems like Demonetization, RERA and GST are only made to hamper the real estate industry, since without RERA registration builders cannot advertise, sale or register the project/property/apartment.

Happy Property Selling!!!

Impact of Demonetization, RERA and GST on Real Estate Industry in India

Today Real estate sector is facing lot of challenges because of central government various new rules. Central govt. announced demonetization in the month of Nov’ 2016, after demonetization this sector slumps down and has not yet recovered and there is no regular sale. No new big projects are being launched anywhere. If the scenario continues, this would create huge unemployment, as no builders would take the risks and to new projects.

When Real Estate Sector started showing some positive vibes RERA and GST is coming into effect to affect the Real Estate Industry. As a real estate professional, we have noticed there are hardly big project has been launched & almost all the builders are getting afraid from the same. Real Estate Sector already facing no growth at all from the last 2-3 years and we do not predict the future because of RERA & GST which is being implemented from 1st July 2017 across the country. GST seems very nice to listen only one tax in India i.e. goods & services tax, but do not know how will it be implemented in certain sectors. GST is 12% on agreement value in Real Estate sector which is 6.5% = (12-(4.5+1)) % more than the earlier tax (service tax & VAT). This means simply property prices will shoot up by 6.5% with no reasons. Means, builders will be in profit, but consumers may have to pay more after GST.

Some of the experts stating that even after these difference this sector will be non-impacted, very positive experts, these experts are simply saying builders will get input credit for building material and these input credit has to pass on to customers. Currently, tax on raw materials is around 18-28% tax which will be 12% post GST. But, input tax credit surplus is unlikely to be refunded to the builders. So, there would be more credit and less liability to builders. As of now, no one has given inputs that how to pass on input credits to customers?

Hardly anyone is interested to launch a new project in the current scenario. Projects that are under constructions, builders are trying hard to even meet the break-even and get back their investments. Because of RERA builders cannot afford to delay their project, since huge penalty on delay project. And the project which is already delayed will be also under purview under RERA. If builder could not complete their project, how builders can complete their project after so much of penalty and that is in such a negative scenario in Real Estate industry.

If really government wants demonetizations, RERA, GST, Housing for All, PMAYS etc. rules/schemes to be successful, government must do following things:
1. Single window clearance for all the projects
2. Increase/maximize the FSI/FAR/TDR, etc.
3. Remove the Red-Tapism
4. Minimize the costing & lengthy processes of getting sanctions/approvals of the project
5. Transparent systems to get sanctions & approvals
6. Encourage affordable housing schemes in all the states
7. If possible, government should launch the affordable housing project alone or PPP basis
8. Equal rules for both sanctioning authority & builders in case if deviations or delay in case of project approvals

I have two queries and not getting answers of these queries.

1. For ongoing project which has been almost 60-70% work is completed in last 2-3 years, where builders have conserved the remaining building material to complete the project. Now how and what percentage should builder pass on the input credit to customers?
2. If builders have to pass on the benefit to customers, builders may increase the rate & give disc. to show the benefits passing on to customers. So, where is the benefit to customers because of GST?

Crux of the Demonetization, RERA & GST:

1. Economic slow down
2. Creates unemployment
3. No property demand
4. Property price hike
5. Every one confused for taxes
6. Delayed project will be more delayed and finally stopped the project
7. More taxes to pay to govt.
8. Houses for no one LIG, MIG or upper strata of the society
9. Real Estate industry will not recover if continues for infinite time

Happy Reading!!!

AFFORDABLE HOUSING POLICY-2013_HARYANA

Sometimes back, I got a chance to study Haryana government Affordable Housing Policy which has been introduced in 2013 to promote the affordable housing projects in urban area of Haryana state. I realized this is one of the best policies for Indian Real Estate market in India, and every Real Estate professional must be aware about the same policy. We could have implemented RERA with the inline of Affordable Housing Policy. I understand RERA has the capabilities to turnaround the Indian Real Estate market. But still most of the builders have no clarity on overall act and in-fact some of the states are in very initial stage of implementing RERA, i am afraid how state government would implement RERA at such short period.
I would love to hear your feedback about my blog......

Here, I would love to share the crux of the Haryana Affordable Housing Policy.

1.  Apartments in the project under affordable housing must have pre-defined size with pre-defined rate within target frame line of 4 years.

2. Maximum possession time would be 4 years from the date of approvals of building or grant of environment clearance, whichever is later.

3. Once project is approved under affordable housing cannot be converted in normal housing project.

4. Affordable housing project can developed in only on 5% of the net residential zone area and maximum net planned area can be permitted in 10 acres area only.

5. Projects are allowed only the residential zone of the notified development plans of the cities of the state.

6. Application for request of approval of the project from concern authority is based on first come first serve basis.

7. Minimum& maximum density permitted is 850ppa & 900ppa respectively. And density is calculated average occupancy per flat i.e. 5 person.

8. Maximum FSI is 2.25 is allowed.

9. Building of the Project can be developed in 50% area only.

10. Maximum FSI for commercial project is 1.75 on 4% of the net planned area.

11. Minimum 15% area is organized open space of the net planned area.

12. Carpet area of the apartment should be between 301 sq. ft. to 646 sq. ft, which does not include balcony/terrace of an apartment. Or I can say carpet area means area does not included under FSI.

13. No separate EWS category will be provided.

14. Parking space shall be provided at the rate of half equivalent car space for each dwelling unit.

15. Only one 2 wheeler parking space will allotted for each flat.

16. No car parking shall be allotted to any flat owner in affordable housing project.

17. Following are the facility is compulsory like Community Hall and Creche area not less than 2000 sq. ft. separately.

18. Maintenance cost is 4% of the apartment cost for the period of 5 years from the date of occupancy.

19. Balcony is charged at partial rate i.e. max Rs.500/- sq. ft. and balcony should not be more than 100 sq. ft.

20. Rate per sq. ft. varies from Rs.3000/- to Rs.5000/- depending upon the divided zone area.

21. Any person can apply but person who does not own any flat in any HUDA developed colony or any other project under Haryana, UT of Chandigarh and NCR Delhi.

22. Maximum 5% of the total apartment in project can be allotted to builder’s relative/friends/associates/employee, etc. But the policy stands still for these customers as well.

Above are the basic concepts of Affordable Housing Policy, which only motive is to create homes for middle and lower middle class family in Urban areas.

Keep Reading…….

 Happy Reading………

Best Wishes,

Praveen Kumar

Real Estate Regulatory Authority (RERA)

The Real Estate Act makes it mandatory for all commercial and residential projects where the land size is over 500 sq. mtr. or 8 apartments/flats/units, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide more transparency in any project. For under construction property, builder will have to complete the registration of the said property within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. In case of fails to register, builder has penalty of up to 10% of the project cost or 3 years imprisonment may be imposed. It has made to smoothen the real estate practices, timely delivery, payment schedule as per actual constructions & most importantly, to deliver what builders show in sales & marketing collaterals during the sale of the property/flat. Further builder has to share all the details related to particular projects like- project lay out plan, floor plans, land status, government sanctions & approvals, etc.

Also RERA made mandatory for real estate agents/broker as well who promotes to sell or purchase of properties, must take prior registration from RERA. Such agents or brokers will be issued a single registration number for each state, which must be quoted by the agent in every sale done through them.

Following are the points which cover under RERA:

1.  All the builders has to have Escrow account & 70% funds of the deposited money in the project account will not be diverted anywhere, only now builder can play with 30% of the project funds. Means, only profit margin amount can be diverted now.

2.  Builder has to quote/sale price on carpet area only. So consumer may understand costing of the any particular flat better. Consumer has to pay now only for what he/she is getting now. As of now, may consumer does not know the difference between carpet are, saleable area, built-up area or super built-up area, so sell on carpet area will give more transparency in actual flat size.

3.  Timely delivery of the projects, since builder has to give the delivery date of the project if fails huge penalty on builders. Delaying the possession dates is the most common practice today. This has huge financial and personal implications for the buyers. In order to ensure strict adherence to the promised schedule, the Bill is entitled to impose 100 percent refund from the builder to the buyer with interest, in case of a long delay in handing over the flats.

4.  Builders often promote their projects by showcasing infrastructure and amenities on paper, that are absent from the finished project. In order to hold the builders accountable for all such promises that they make, the Bill does not allow any changes in the project at a later stage. If the builder is found guilty of over-promising and under-delivering, then he can be penalized at 10 percent of the project cost or up to three years of imprisonment.

5.  Most of the builders do not share with consumers pending approval or sanctions of the project. This may affect the project later or trouble the consumer. The Bill clearly states that it’s mandatory for builders to ensure all government clearances for the project well before they start selling flats.

6.  It would be mandatory for builders to get all the required clearances from relevant authorities before formally launching the project. Right now builders launch the project when there is nothing at the land and have no permissions for anything. They give rosy pictures to investors, end users and start taking the money from public & then start the getting approvals and coming up with the structure. This means there will be obvious delays and lots of confusion for investors & end users. Now, the concept of “pre-launch” offers will vanish.

7.  The Bill offers the buyers to approach the builders even after possession. Consumer can approach builder even after 1 year from possession in case of any defects or deficiency in the property. Thus the builder shall be liable to rectify the issue at hand as early as possible.

8.  A builder will not be able to take more than 10% advance money from buyers without a written agreement. Currently builder asks for huge money as an advance.

9.  Builders will have to use the actual site pictures or the actual construction work pictures for advertisements for the project. Right now builders do not use the actual pictures for promotional purpose. It’s easy to create an illusion by using graphics and shiny pictures and that is what happens most of the times.

Almost all the states has submitted the final draft bill of RERA to central government & central government would be making mandatory to all the states & UT to implement asap.

May Real Estate industry would have golden time soon, since demonetization has been done, GST implementing soon, Pradhan Mantri Awas Yojana i.e Pakka Ghar for every Indian & now also focus on affordable housing developments. Few of the builders have already started the process to build the affordable housing which will definitely increase the demand.

Awaiting for the Golden Period of Real Estate……

Best Wishes

Praveen Kumar

+91 91 588 922 86