Category: Delhi/NCR Real Estate

Real estate related cases highest at consumer court

GURGAON: In a city which boasts of highest number of consumer grievances in the state, cases of insurance default and real estate invariably occupy the top slot.

The Times of India get a large number of cases related to real estate. The number of consumers approaching us for non-delivery of flats in times has been increasing. We have a number of cases of cheating by the builders. This includes even the top builders in the city. We have several cases of builders who are repeat offenders. We have issued arrest warrants against them as well,” said an official of the Gurgaon district consumer disputes redressal forum.

The official said consumers also approached the forum with complaints against HUDA relating to disputes of plots.

“In Gurgaon, consumers are more educated about their rights. Of late, we have solved several cases relating their real estate,” said Raghvinder Singh Bahmani, president, district consumer disputes redressal forum, Gurgaon.

Consumer disputes relating to airlines and travel tourism, especially holiday clubs and resorts, is also higher in Gurgaon compared to cities in the state.

“The reason is that large number of technocrats, CEOs and top MNC officials keep visiting different countries. Case relating to airfare, baggage and deficiencies of the services of the resorts are much higher in Gurgaon. We have 19 cases relating to airlines and several cases against top resorts in the country,” said an official from the forum.

Cases relating to mobile phones, automobile, Bank ATM and Postal Delivery are also higher in Gurgaon compared to cities in the state.

Source: The Times of India

Housing prices begin to fall as slowdown bites

NEW DELHI: The rising interest rates, liquidity tightening in the banking system and slowing down of economy have badly affected the real estate sector. As the demand for residential real estate has softened, its prices across the markets in India have started showing a declining trend.

According to National Housing Bank residential index, the prices have shown a declining trend in 22 out of 26 cities in the April-June 2013 quarter compared to the January-March quarter. Real estate prices have softened in major cities like Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Pune. (see chart)

Real Estate Price Fall Index
Real Estate Price Fall Index in Major Cities

R V Verma, CMD of NHB, said rising interest rates have adversely affected the demand from end-users, which led to rise in the inventory of unsold property. As builders have to meet the loan repayment liability as well as complete the already started projects, they find it more prudent to cut prices to sell the units and generate cash.

Sanjay Dutt, joint MD at Cushman and Wakefield, a property consultancy, said the decline in prices is not sufficient enough to attract the buyers. But, the good thing is that a beginning has happened. He felt if the economic conditions do not change, the trend will continue and it will provide a good opportunity to the end-users to buy a house. Dutt said as the sentiment is subdued the investors are also absent from the market.

Verma too argued that the declining trend in the real estate prices is good for both builders as well as end-users. As the cost of money has gone up and the chances of making money in the short-term are not very bright, the investors are absent. This will be a positive for end-users to buy house.

Verma added that if prices come down, transactions will increase, which would improve the cash flow in the sector. In 2008 and 2009, when the entire country was reeling under the global financial crisis, real estate came out of it unscathed mainly because of its strategy to cut prices and increase turnover.

Source: The Times of India

Environment Ministry limits ambit of clearances for realty projects

NEW DELHI: The environment ministry, under pressure from real estate and builder lobbies, and state governments, has limited the ambit of clearances for projects in this sector. Now, local civic authorities will lay down the norms relating to building control and safety in line with the relevant master plan.

The real estate sector has consistently demanded that environmental clearance procedures be simplified and shortened. The urban development ministry too has been advocating single window clearance for real estate and housing projects, arguing that this would help contain escalating housing costs. Given its function as a regulator, the environment ministry had made it clear that it could not be part of a single window clearance system.

However, in response to the overwhelming demands, the environment ministry set up a committee headed by Planning Commission member K Kasturirangan to review the environment clearance process for the sector. The committee recommended that the local authorities decide on the norms, and the environment clearance authorities focus on environmental impact, waste water treatment, air quality and such issues.

Source: The Economic Times