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Buyers Vs Builders: The Fight For The Right

project delays, builders vs buyers, realtymyths
“Buyers are all against the builders. Thanks to project delays. Project delays have created a mess in the real estate market. As per a recent industry report, a total of 2,40,364 million sq ft of residential area was completed in the year 2015 as compared to 4,80,242 million sq ft in the year 2010. Buyers are now completely against builders and are hitting from all the corners. Be it on ground agitations or a war on social media, they are not shying away from the fight to get their right”

buyers vs builders project delays realtymyths

Souma Mukherjee

Yes, the wave of revolution has hit the shore. Home buyers are out on the streets, courts, consumer forums, and social media platforms to fight for their right. The battle in between the builders and the buyers is getting fierce. The suppressed anger is creating rebel groups against the builders. The voice is going louder with thousands of claims every day. Buyers have also taken the e-route to speak the unspoken. The surplus supply with a fluctuating base price is creating a difficult situation for this sector. Hopes of the home buyers are being shattered, which is creating a nuisance for the real estate brands. The pool of small builders launched big projects in Delhi NCR, Mumbai, Pune, Hyderabad etc. offered lucrative schemes are now on the verge of shutting down. Possession is still questionable. Every month, buyers are paying their hard earned money to possess an apartment, a need indeed.

The Social Media Rage

Buyers have taken a step ahead to get heard with the help of Facebook groups, buyers associations, twitter trends, and Whatsapp groups. The guerrilla warfare social media strategy is making a huge impact on the brands. People are aware of the influence of social media that they are empowered with. Recently, DB Realty, Gaursons, Unitech, Amrapali and many others were trending on twitter with thousands of buyers going on e-dharna. It was a statement of freedom towards a corrupt system. The mainstream media also stood by the buyers.

Some buyers have made their choice and fight for what they paid for and deserve. Honestly, they are winning side! Builders are in a miserable state too with delivery issues. The liquidity is also missing in the market. Schemes and compromised marketing budgets are affecting the brands and their brand image. Buyers have lost trust from this sector and are holding back, even though it a great time to invest.

5 Basic Reasons for This Situation

• Possession delays have become a nightmare. Buyers are waiting for 10 years, even more. Promises made by the builders are depreciating with time. The only hope is that company is still not shut.

• In most of the cases, the agreement done by the builders are as per their convenience and can be manipulated.

• Sales representatives, brokers are not accepting calls or replying, leaving no option for the buyers to connect with the company.

• The financial crunch is making every plan go in vain. EMIs are killing day by day.

• The wait is getting longer to settle with the family. Who does not want to reach his destiny with timely goals, and aspire higher and achieve more!

7 Quick Reference Guidelines to Avoid This Situation

• A cheap property is not necessarily a good investment. This may hold true in low-cost emerging locations which will grow in the future, but larger homes with better specifications tend to perform better in already developed areas

• Freebies do not necessarily mean a good bargain. Check the developer’s track record and delivery timelines.

• Give preference to properties in integrated townships, as these will attract the huge demand from home buyers in the future

• Give due diligence to project approvals and land acquisition certificates. These must be done to the best of one’s capability.

• Read the agreement’s fine print related to the sale of property.

• Take a long-term perspective on property investment for maximum capital appreciation. Look to sell just before possession.

• Invest in projects/property markets where an active secondary market exists or is possible.

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