Builder’s credibility will matter a lot in the new market conditions

Don’t go by the hype but check credentials

The real estate industry picture throughout India is bleak and the industry gasps for liquidity and is asking for more investment. Thus it is imperative to take the right decision for investment.

One fact is surely true and that is the dealers of real estate are extremely smart and they know the psychology of the prospective customers and it is also a fact that the developers are always to check with out hurry. The developers have perfected the art of extracting money from the prospective buyers. The situation can be best explained if we see that it is always a fact that there are a few flats available and the rest are sold out. One would be told that there are several enquiries and the person who invests first will be offered and thus a quick decision is necessary. One would be also cautioned that within a couple of days the prices of the properties would increase.

Because of such a pressure one often makes a hasty decision without even scrutinizing the details of the property, documents or about the developer. This is a situation often created by the builder to shroud his weaknesses. This is the trap that one can fall into which the buyers should be aware of.

It is always advised to carry out a detailed analysis of the schemes and offers of various other builders before taking the final decision. Real estate is full of property scams and illegal activities where developers buy part of a land and sell the land quickly without having full title or selling rights of the land. Thus a thorough document check is also advisable. Because of all these an investor has to be careful before investing.

The Indian economy is at the cross roads with the inflation tapering down with the expected slashing of interest rates and as the GDP growth rate surges upwards few property types seem to be more attractive from the investment point of view. Such indicators as improved GDP figures with a moderate tax structure and an accelerating industry metrics normally boosts savings in the economy. With strong international ties and a good international business scenario as hinted by the Prime Minister Narendra Modi, the demand for housing and commercial real estate is bound to increase.

The market analysts already remarked that 2015 will be the best year in the decade as far as real estate absorption rate is concerned. It can be estimated that with the absorption of 40 million square feet of commercial space in 2015, there will be a generation of around 4, 00, 000 new jobs as 100 sq. ft. of commercial space yields one new job. The cities with maximum potential of job creation are Bengaluru, Chennai, Pune, Gurgaon and Hyderabad, which will continue to maintain their stance in residential demand.

In such scenario what is obvious is a hasty decision to get hold of a property with most promising prospects in the city. It can be understood that a location plays a key role in accentuating the value of the property but that is a part of the story. But an early investment in under construction properties is also of quite importance and in that the credibility of the developer matters the most. Not only the document check, title check and an advice of the lawyer is needed but a thorough background check of the builder or property developer is also crucial for investment.

Credibility certainly matters:

The periods of under construction are a crucial factor which increases the interests on loans and the prices of properties. Such delays in construction are a common phenomenon with builders which happens due to delays in approvals and clearances. The delays in construction also happen due to the developers as there are cases where developers have invested the money of the customers in buying new plots. To keep away from such problems one can always search online to see the credentials of the builders or developer in different blogs and review sites.

As there are no regulations for the developers or a regulatory body to govern the quality of real estate transactions such internet research or research for developer’s credibility is highly recommended. Notwithstanding all these facts and the prevailing market scenario builder’s credibility is surely something to look at before investing.

Be cautious of the hype!

Real estate is a field where the marketers have taken recourse to online marketing and promotions in a big way. With the flamboyant advertisements and the exaggeration of the facts the buyers are constantly falling prey to misleading marketing hypes. In reality many builders of India do not have enough experience in construction but nevertheless they ring loud in the buyer’s minds with the marketing stunts and hypes and the hard selling tactics of the property agents.