According to JLL property report on Noida real estate, over 40% of new residential projects in and around the city are falling behind the construction schedule of over 4 years. The agitated home buyers are going to the consumer courts of Uttar Pradesh for the possession of their homes.
Current Status in Noida
Middle class home buyers from Noida, Greater Noida and Ghaziabad have booked around 4 lakh residential apartments, out of which almost half (40%) of these projects are under delayed construction. The projects have crossed the possession date by almost 4 years, yet under construction which causes the purchasers to pay EMI and rent for a long period. According to the JLL survey on current residential projects in and around Noida, there are a total of 2.3 lakh homes under construction (Noida & Noida expressway- 1.1 lakh; Noida extension- 94,500; Greater Noida & Yamuna expressway – 24,600) where 95,859 homes lagging behind the schedule and this accounts for 40% of total units. Experts say that at this point, flat owners have lost faith in the developers regarding the delivery of their homes.
Reason for the Delay
The Greater Noida West (Noida expressway) has faced construction delays due to the land acquisition issues that happened recently. According to industry experts, the misuse of funds like investing the project money on expansion spree instead of construction process also caused delays in project delivery. Although there are surplus projects available under big banners, most of them are under construction.
However, the builders are subjected to pay a construction delay penalty of Rs. 5 to Rs.10 per sq ft which is usually evaded by them. Instead of money, the builders claim to give extra sq ft space for the home buyer which is only the public area (stairs, common area etc.) and not carpet area.
Is there a Solution?
As of now buyers hit the consumer courts to settle the issue where they get reasonable compensation for the delay in possession but builders challenge them through high court appeals. Thus a buyer is helpless with the prolonged delay which leads to dharnas and public strikes in front of the builders’ offices sometimes. Still there is no permanent solution for such issues due to the lack of a governing body.
The real estate regulatory bill is the only hope for these home buyers at present since it can protect the middle class home buyers from property related issues. It is always advisable to buy a property after construction or nearing completion so that one can avoid such hassles in buying a property. You can also the builder reputation and previous project tracks even if they are established in the industry. This way, you can get an idea before investing your money in under constructed projects.
Current Status in Noida
Middle class home buyers from Noida, Greater Noida and Ghaziabad have booked around 4 lakh residential apartments, out of which almost half (40%) of these projects are under delayed construction. The projects have crossed the possession date by almost 4 years, yet under construction which causes the purchasers to pay EMI and rent for a long period. According to the JLL survey on current residential projects in and around Noida, there are a total of 2.3 lakh homes under construction (Noida & Noida expressway- 1.1 lakh; Noida extension- 94,500; Greater Noida & Yamuna expressway – 24,600) where 95,859 homes lagging behind the schedule and this accounts for 40% of total units. Experts say that at this point, flat owners have lost faith in the developers regarding the delivery of their homes.
Reason for the Delay
The Greater Noida West (Noida expressway) has faced construction delays due to the land acquisition issues that happened recently. According to industry experts, the misuse of funds like investing the project money on expansion spree instead of construction process also caused delays in project delivery. Although there are surplus projects available under big banners, most of them are under construction.
However, the builders are subjected to pay a construction delay penalty of Rs. 5 to Rs.10 per sq ft which is usually evaded by them. Instead of money, the builders claim to give extra sq ft space for the home buyer which is only the public area (stairs, common area etc.) and not carpet area.
Is there a Solution?
As of now buyers hit the consumer courts to settle the issue where they get reasonable compensation for the delay in possession but builders challenge them through high court appeals. Thus a buyer is helpless with the prolonged delay which leads to dharnas and public strikes in front of the builders’ offices sometimes. Still there is no permanent solution for such issues due to the lack of a governing body.
The real estate regulatory bill is the only hope for these home buyers at present since it can protect the middle class home buyers from property related issues. It is always advisable to buy a property after construction or nearing completion so that one can avoid such hassles in buying a property. You can also the builder reputation and previous project tracks even if they are established in the industry. This way, you can get an idea before investing your money in under constructed projects.