Advanced Search
Advanced Search

₹ 0 to ₹ 1,500,000

More Search Options
we found 0 results
Your search results

Homeowners in India roll up sleeves to complete unfinished flats

Posted by Urban Avenues on April 26, 2019
| 0

Few things illustrate the malaise in India’s property market as starkly as would-be homeowners having to dedicate untold hours to completing the flats they spent years saving up for.

BY: Dhwani Pandya and Pooja Thakur

Lalit Vazirani, a computer programmer from Mumbai, never reckoned on having to turn amateur property developer.

Yet here he is, a decade after putting down a deposit for an apartment near the city’s airport, dealing with architects, taxes, various planning permissions and even court hearings. All because the developer behind the $50 million project has gone bust, and nobody else has stepped in to finish the work.

“We never in our wildest dreams imagined one day we would take on the functions and the role of a developer,” said Vazirani, 45, who bought the two-bedroom unit before construction started. “But fate had other plans.”

Few things illustrate the malaise in India’s property market as starkly as would-be homeowners having to dedicate untold hours to completing the flats they spent years saving up for. While no estimates exist for the number of people in Vazirani’s position, India’s property market is struggling to digest some $65 billion worth of projects in various stages of completion — or, in many cases, non-completion.

It’s an issue with the potential to sap confidence among house buyers, further complicating developers’ attempts to claw their way out from under a mountain of debt.

Weakened Faith
So many delayed building projects have “severely weakened faith in any under-construction properties and reviving buyers’ trust is a Herculean task,” said Anuj Puri, the chairman of Anarock Property Consultants Pvt. “If buyers stop purchasing, builders will have a far more challenging time to get funds from external sources for construction.”

Two years ago, India introduced a law with strict punishments for building delays.

A series of economic shocks in the past three years, from the unexpected withdrawal of high-value rupee notes in 2016 to the sales tax introduced the following year, have dented property-market sentiment and caused funding for developers to dry up. Many lack the funds to keep projects aimed at millions of more affluent citizens going.

An analysis of about 11,000 home builders by research firm Liases Foras in February showed that developers on average have to repay twice as much in debt each year as the income they generate that can be used to service it. This comes as property prices in India’s biggest cities are flagging — home values in Mumbai sank 11 percent last year following a 5 percent decline in 2017. They ran up 32 percent in the four years through 2016.

 

For more read click here: https://realty.economictimes.indiatimes.com/news/residential/homeowners-in-india-roll-up-sleeves-to-complete-unfinished-flats

Leave a Reply

Your email address will not be published.

  • Advanced Search

    ₹ 0 to ₹ 1,500,000

    More Search Options
  • Mortgage Calculator

  • Archives

Compare Listings


Deprecated: Directive 'allow_url_include' is deprecated in Unknown on line 0