It all started with the issue of land grabbing from the farmers in Noida and Greater Noida in 2014, and till date, the vast landscape of two of the most promising real estate landscape development in UP continues to suffer. All we hear about Greater Noida is the pending International Airport development (moving by inches), or about one big developer or the other calling it quits, due to bankruptcy. The result is visibly upsetting, as it is the home buyers who are made to suffer at the cost of their big land investment. Overall, the reputation of the sector is at stake as big developers continue to- not-deliver- leaving behind a feeling of distrust among the home buyers who once had full confidence in them.
So, who is to be blamed for the present scenario? Even the current political Morgan- the Honourable Chief Minister of UP- had promised to deliver 50,000 units by the end of March 2018, but the units have not been delivered as promised as reported by the media recently. He had made another attempt to free the vacant state-owned land from illegal occupants which highlight the current state-of-affairs in India’s largest state of Uttar Pradesh.
Moreover, post-demonetisation, the sector has been under continuous scrutiny with buyers waiting for some price correction, leaving many property developers in the lurch. That, fast-action, expected to be the turn-around time for real estate industry has still not happened. Even after RERA has been introduced, giving a clear benefit to the home buyer, who can now check the delivery status of his apartment online and report the matter to the concerned authorities in case of an unprecedented delay; the situation still remains the same. There are still many concerns regarding the implementation of RERA, which RealtyMyth had earlier reported. The most prominent being- lack of consumer awareness.
The post-demonetisation scenario has affected us in many ways. If the present economic scenario is anything to go by, jobs are fewer and income is not growing at a fast pace, which spells only bad news for the investment in the residential housing segment. The present government’s focus is also on developing rural housing/affordable housing segment, thus leaving the urban real estate scenario in the doldrums. We don’t know as yet, when will the demand in the residential housing space pick up, is it anytime soon?
Property developers on their part are leaving no stones unturned to maximise sales. Whether it is adapting to the digital way of selling, or it is about offering freebies and discounts during the festive time- when the buyer mood is optimistic- the project developer to property dealer is doing their best. However, the buyer is still in a cautious mode with a single motive of price correction driving their investment sentiment. So, who is to be blamed for the slowdown in sales? We cannot put the blame directly on the home buyer, who after being caught in black-marketing of residential properties, finally see some window of opportunity with market tilted in their favour. They have every right to wait and watch and invest with caution.
At the moment it seems like a systematic failure which is on its course correction now. It all began with the bold measurement of demonetisation with home buyers making a cautious investment in every sphere of their life including housing. Further delay in property possession has dampened the spirit of the home buyer, with them demanding more attention from the system, in their favour. RERA is one big measure which gives more power to the residential property investor.
Affordable housing is another which gives more power to the real estate sector as a whole. With more dwelling units under production, investment is natural to come through. The momentary focus seems to be on the affordable housing segment and technology driving the real estate sector in the context of monetary value generated, through high volumes, and also a number of jobs generated in the sector itself. With RERA awareness growing, it is only expected to get more transparent and trust-worthy between the buyer and the seller. We now wait and see what happens next.
Pooja Bhatia is a property news enthusiast, who likes staying updated on business and corporate news, lifestyle at home, home interior elements, location insights and rest of the information, to make living better. She is also an avid traveler (a blogger on holidays) and an avid reader and a part of this real-time information, she converts into real estate enthusiasm.