Real estate has always been the go-to investment option for Indians looking to invest; it’s the so called “Safe-Bet”. No matter what the statistics or trends say, we Indians have always had a soft spot for Real estate investment. But with everything as it is, there is still some hesitation which can be observed today among the buyers! There is a slowdown of demands in the market, and a general lack of trust in the buyers against the developers still continues. The large unsold inventory in residential projects across many cities is therefore no surprise.
The poor connect and lack of transparency seems to be at the bottom of this mistrust. A general perception that developers try to hide facts from the homebuyers results in wariness from the buyers’ end. There is the issue of non-affordability and the high prices despite the slowdown. Buyers are not aware of the approvals that the developer has already received. Sometimes, the request for revealing the facts has been turned down by the developers, breeding further gaps between the two parties.
All is not lost however! This situation is not useful to either side. Hence, in a bid to break the impasse, there are many developers who have started reaching out to their buyers. This includes digital promotions, transparency, and social media outreach programs. The positive measures are being taken by the developers at their end to bridge the gap and remove this lack of trust among buyers! Builders who are committed to their promise have even started adding clauses that can help build a relationship with their buyers. Take for instance Tinsel County (Hinjewadi, Pune), whose developers, Kohinoor Group have added a rare offer “to provide Rs. 50000 per month compensation if the construction exceeds the promised time limit.” Such measures can go a long way in building trust that is beneficial to both sides.
The RERA regulation that has come into effect from May 2017 is a step towards building mire accountability for the developers. The government across various states is trying to implement infrastructural setups to make it easier for developers to register with RERA. There is a thrust by the authorities to push developers to complete projects so that the sentiment of the buyers can change. How the RERA plays out in each state will be a key factor in determining the direction this issue takes.