As Real Estate Developers / Promoters Struggle to Deliver, Property Buyers Step Up Protests via Social Media..

Better to buy complete or / near-complete projects, rather than go for pre-sales projects, even if there is a good discount

Annoyed with the delays in handing over properties & deficiencies in services, house buyers are protesting against real estate developers / promoters either through marches or through the social media.

In the last 6 months, many leading developers like DLF, Unitech, Oberoi Realty & Supertech have been at the receiving end of the buyers’ wrath.

One such protest, which began in the Delhi - NCR region, is now spreading to cities like Mumbai, Bangalore & Chennai, where execution delay is taking a toll on consumer patience.

Developers, on their part, blame funding costs along with slowdown in the sector for the delays.

The Delhi-National Capital Region (NCR) has a majority of under-construction properties. It accounts for nearly 65% of the total housing stock in India.

“Nearly 50 of us gathered for a peaceful protest to convey our grievance to investors, bankers, shareholders & the Unitech management about the delay in giving possession of Uniworld Two. The project, launched in 2008, is yet to be completed. We are thinking of taking legal recourse as the company has got its share of money through the construction-linked scheme but is yet to give timely delivery” Mr. Shailendra Bais, a home buyer, said.

 

Mr. Shailendra Bais said the association had nealy 300 (out of about 850) house owners from both India & abroad who had connected through Facebook & were planning a protest march.

The largest developer DLF Ltd, too, was at the receiving end with nearly 500 housebuyers of DLF New Town Heights, Gurgaon, protesting against delayed possession of flats.

They alleged they had incurred a collective loss of above Rs. 680 crore in the project, launched in 2008.

Similarly, Mumbai-based Oberoi Realty, too, had its share of trouble with residents alleging, among other things, delay in forming residents’ society and change in project plans.

Nearly 400 residents are seeking Rs. 600 crore as compensation for alleged irregularities in services.

Real estate sector watchers note that most companies that were struggling with deliveries had launched projects under the construction-linked plan, where a chunk of money is taken upfront while the balance as the construction progresses. However, with the downturn in the economy, funding & raw material costs had spiralled, leading to project delays.

Mr. Santhosh Kumar, CEO (Operations), Jones Lang LaSalle India (JLL India), said delayed delivery of residential projects had become a major issue, leading to high levels of ire among customers.

In terms of the average delay in delivering residential projects across India, over 25% of the committed supply has not been able to hit the market according to schedule.

NCR’s performance in terms of delivery of residential supply in 2013 has been the worst.

In Gurgaon, only one-third of the total committed supply for 2013 has been delivered so far.

Property buyers, therefore, would do well to look for approved projects, with bank funding, where more due diligence is done. It is better to buy complete or / near-complete projects, rather than go for pre-sales projects, even if there is a good discount, say experts. 

Share: