few takers are available for new homes in Mumbai and Delhi

In Mumbai and Delhi, real estate developers are finding it difficult to get the buyers and they are facing worse condition because due to unaffordable prices are leaving only non takers for new projects. As per the statement of Anuj Puri who is Chairman and Country Head at JLL India, currently the real estate market is so sluggish and due to that inventory is increasing day by day.

While facing these situation most of the developers are trying to enhance their price for new projects. Samantak Das, Chief Economist and Director Research at Knight Frank India, stated that with the absorption of current rates new builders are trying to get their numbers back. However; price reflection is first sign fo to 20 per cent, stated by Anil Kothuri who is Presidentr bear market in real state sector, whereas; the price is remaining flat for the projects which are in existence from past two years. Some experts are saying that investment in other domains can provide good returns.

Why only few takers are available for new projects?

`Howevver the picture of real estate market is not so much different from Mumbai city as the current supply is higher than current demand. Mumbai is the only place where people can still find the pre-leased commercial properties. Buyers are still waiting for low interest rate however due to correction of price in real estate market they could have to wait for some more time, but after holding the property for one to two more years now investors and builder both are losing hope as well as patience and because of that now they are ready to offer small offers and discounts in the form of different things such as; freebies in flash sales, free parking, low interest of loan, attractive payment plans, free stamp duty and registration and more.

Whereas; with better research you can also find the few builders who are offering big price discounts for those who are buying in bulk because discount largely depends on kind of area, location and property. In big deals, because of economies of scale, builders are ready to provide 15 to 20 per cent discount for those properties which are under construction. But discount is still small that is 5 to 10 per cent for those properties which are ready for possession and available in secondary market. All the differences in price and property trend is differ as per area too. In the absence of large supply there are less price pressure in the western suburbs, but for central Mumbai areas such as; Parel and Worli the price pressure is more.

How long the latest trend will continue?

Another most important question is that till what time the recent property trend will continue? Changes in policy by the Maharashtra government can add a lot of supply in current market and then there will be possibility that real estate prices will become more affordable, but it will take some more time. Real estate market in Mumbai had seen very much price correction in between the year 1995 to 2001; however the prices are crashed by half in many pockets.

What end users and sellers can do?

While analyzing the recent property trend you can classify the real estate sector into two categories; end uses and investors. The correction has just started because there are no room for panic selling in real estate market, so buyers who are waiting for right movement to buy property should wait for 1 to 2 years, but still end users are restricted by many other factors such as; birth of kids, financial capability, marriage, getting a better job, and more.

Consumer forum of Gurgaon, asked builder to make a refund

Recently, in one of the case consumer forum of Gurgaon has directed Delhi based real estate firm or developer to refund Rs 4.25 lakh to one of their home buyer who had purchased a flat at Bhiwadi location. In an order which was passed on March 20, 2015, Raj Kumar Tewatia, who is consumer court judge directed to Mtech Developers; as developer was found guilty as a breach in the contract. The contract was with Ashok Yadav, who is one of the residents of Baslambi in Gurgaon.

Why Consumer forum of Gurgaon asked builder to make a refund?

In April 2007, Ashok Yadav had made a payment of Rs. 4.25 lakh for a plot in Phase 1at Camellia Garden in Bhiwadi location. Mr. Yadav had sought a refund when Mtech Developers did not allot the flat or plot after more than two or three years, however developer had agreed to refund the whole money in eight equal and easy installments, but after making paying three installments builder suddenly stopped the payment without any prior notice and after that Mr. Yadav moved to court in the year 2009 as he was seeking for the payment of rest of the balance which was approx. Rs 2.65 lakh.

Current status of the case:

While reply to the notice of court, real estate builder had denied any kind of charges while asking the question to jurisdiction of the consumer forum to proceed the case in Delhi as developer has his satellite office in Delhi, but consumer forum rejected the plea of real estate builder as complainant was based in Gurgaon and because of the he is entitled to file a complaint in Gurgaon. By analyzing all the facts and figures it’s clear that real estate developer has adopted an unfair practice as they didn’t refund the entire amount.

Total compensation:

The complainant was for the refund of balance which was about Rs 2.65 lakh along with the desired interest rate which is at the rate of 9% from date of deposit. Apart from that entire complainant is awarded with the amount of Rs 30,000 as the compensation for mental harassment in addition he also entitled to get the expenses of Rs 11,000. The judge ordered that if the compliance will not to be made within 30 days, so developer need to pay the interest at the rate of 12% per annum.