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ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

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ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

Last updated: November 17 2012
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  • #21

    #21

    Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

    Sir I have seen incomplete building in front of American Bank at Barakhamba Road before Lalit Hotel Connaught Place same condition from 1985.
    Garg

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    • #22

      #22

      Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

      Originally posted by pgarg6868 View Post
      Sir I have seen incomplete building in front of American Bank at Barakhamba Road before Lalit Hotel Connaught Place same condition from 1985.
      , I see this building every time whenever I cross CP once in a fortnight , or in a month. and several time I also think why it is like that at worlds costliest land rate location. No initiative to get it finish.

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      • #23

        #23

        Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

        Originally posted by pgarg6868 View Post
        Travini project in Faridabad is Stalled project sale the project in the year 2006 still construction going in for few towers.
        these small time builders are utter crooks and their sole intention to launch a project is to earn some money and ditch the customers....may god save innocent bueyrs like us from these croosk
        but as u said the construction is under progress so i am hoping that the bueyrs could finally drink a cup of tea in their balcony some time 5 years down the line with this project

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        • #24

          #24

          Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

          Court mai atak gaya to latak gaya
          Venky (Please read watch a or before posting)

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          • #25

            #25

            Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

            Originally posted by kumar13 View Post
            these small time builders are utter crooks and their sole intention to launch a project is to earn some money and ditch the customers....may god save innocent bueyrs like us from these croosk
            but as u said the construction is under progress so i am hoping that the bueyrs could finally drink a cup of tea in their balcony some time 5 years down the line with this project
            Construction work going on for four towers out of 20 and 16 tower still in basement.
            Garg

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            • #26

              #26

              Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

              UNCERTAIN HOMES: Delayed Projects Are Common And Some Are Even Scrapped Midway. Here’s How To Deal With The Situation

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              • #27

                #27

                Re : ITS OFFICIAL - DELAYED projects a realty for Indian Home Buyers

                About 50% homes due for 2013 delivery to be delayed on slow construction approvals, liquidity issues


                Nearly half of the 323,000 homes to be delivered in 2013 are lagging behind construction schedule, with a third not ready for a housewarming before 2014.


                NEW DELHI: Here's a shocking piece of news for those waiting to take possession of their homes next year. A new survey has found that nearly half of the 323,000 homes to be delivered in 2013 are lagging behind construction schedule, with a third not ready for a housewarming before 2014.

                In addition, nearly three of every four homes promised for delivery in 2014 are also likely to be delayed, real estate research firm Liases Foras has found in a nationwide survey conducted recently.

                "There have always been delays, but it is a bigger concern today as the quantum of homes being built is much larger now," says Deepak Parekh, chairman of India's biggest mortgage lender HDFC Ltd.

                "Everyone's money is stuck. It is not only bad for homebuyers, but also for the economy," adds DK Mittal, secretary, department of financial services.

                The problem that began in 2010, when the economy started to weaken, has aggravated in the last one year due to paucity of funds as well as delays in securing approvals. Home sales have slowed down, private equity has dried up, the primary market is subdued, and banks have been reluctant to lend to builders. A combination of consumer activism, agitation by farmers, bureaucratic delays, labour shortage and legal wrangles has also contributed to holding up projects.

                The delays leave lakhs of homebuyers to grapple with another problem in the midst of rising prices and a slowing economy. "Individual homebuyers have the option of taking recourse to the law, but almost no one does so as it is a cumbersome process and may lead to further delays if the builder digs in his heels," says Vaibhav Gaggar, partner at law firm Gaggar & Associates, which helps clients in real estate disputes, among others.

                "If they choose, buyers could invoke a clause that is part of most standard contracts, to terminate the contract and get back their money with interest. If the person chooses to retain the property, he could file for compensation and damages by proving that he has been injured financially," added Gaggar. At present, contracts between buyers and builders provide for a per sq ft compensation in case of delays. "But the amount is minuscule," he said.

                Builders in the Delhi-National Capital Region have been the biggest culprit, with a 74% late delivery rate, followed by Mumbai and Chennai at 61%, Bangalore at 59% and Kolkata at 57%. "Data indicates that there would be more delays going forward because of the stress on cashflows of developers," says Pankaj Kapoor, managing director at Liases Foras, the firm that carried out the survey.

                Supply, Demand Both a Concern

                This non-brokerage real estate research and rating firm services banks like HDFC, Axis Bank, Deutsche Bank and Standard Chartered as well as big real estate companies and private equity funds.

                Experts say there are liquidity concerns both on the supply and demand side. Many developers are faced with a liquidity crunch and cashflow issues due to slowdown in home sales, and this is turn is impacting their ability to finance construction of new properties.

                "Home sales are down nearly 40% because of the very high cost of homes. This is becoming a vicious cycle," says Anckur Srivasttava, who heads GenReal Property Advisers, a property consultancy. Adds Anshuman Magazine, managing director of CB Richard Ellis: "There is a liquidity concern on both the supply and demand side due to high interest rates and high prices. The impact of the slowing economy is reflecting on the ground now, in demand slowing down and execution of projects being hit."

                According to a recent report by real estate consulting firm PropEquity, the number of unsold properties in India's top seven cities at the end of December this year is expected to be around 32,000 units and valued at over Rs 21,000 crore.

                Developers argue that liquidity issues are just one of the reasons for the delays. More pressing is the issue of getting approvals on time to get on with construction.

                "After the first approval, subsequent no-objection certificates and approvals like water, electricity connections, completion certificate and others get delayed," says Lalit Kumar Jain, president of the Confederation of Real Estate Developers Associations of India (Credai), the national association of builders. The regulator will, however, have the right to give an extension to the builder on a case-to-case basis.











                About 50% homes due for 2013 delivery to be delayed on slow construction approvals, liquidity issues - The Economic Times
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